- The S-1 paperwork for Lyft’s anticipated multibillion IPO is now open to the public.
- It lists who the major shareholders are.
- These are the people that will cash in big time should the stock sale go well.
The S-1 paperwork for Lyft’s anticipated multibillion IPO is now open to the public, and it lists who the major shareholders are and how many shares they own. These are the executives and venture investors who will reap a huge financial windfall should the public love the stock and drive the share price up.
While we don’t know exactly how much this IPO will enrich each one of the early investors until the shares are priced, Lyft has revealed a share price range, giving us a better idea of who will reap the biggest rewards when Lyft goes public.
The company plans to sell just under 30.8 million Class A shares, which it plans to price between $62 and $68 each. That price could could higher if its roadshow with the initial investors goes well. At $68 per share, Lyft would be valued at roughly $20 billion, up from its last private financing round, which valued the company at $15 billion.
Only Class A shares will be sold to the public. Class B shares, which carry more voting power, are being split between Lyft’s co-founders, Logan Green (who will own just over 60%) and John Zimmer (who owns just under 40%). So, even though they hold relatively small stakes of the public Class A shares, they will control nearly one-third, and nearly one-fifth of the total shareholder votes respectively.
If either of them were to sell their Class B shares (except in certain cases, like putting them in trust to a non-profit), they would convert to Class A shares, Lyft says in its documents. Therefore, for the sake of this estimate, we have calculated the value of the Class B shares as if they were Class A.
Here are all the people with sizeable stakes in the ride-hailing company:
SEE ALSO: Lyft kicks off 2019 unicorn IPO spree with public S-1
Logan Green, cofounder and CEO
Green and cofounder John Zimmer began their collaboration in 2007 with a service called Zimride that helped people find carpools via Facebook.
In 2012, they launched a ride-sharing service that used a mobile app called Lyft. It took off from there.
After the IPO Green will own 7,689,182 of Class B shares. At the high end, $68/share, this stake will be worth nearly $523 million.
John Zimmer, cofounder and president
Zimmer spent a lot of time in college finding carpoolers to share his ride as he regularly drove from Cornell in upstate New York to New York City. He was introduced to Green over Facebook by a mutual friend. A week after they met, they were working on Zimride together, so the story goes.
After the IPO, Zimmer will own 5,090,527 shares of Class B stock, which could be worth over $346 million.
Sean Aggarwal: 1.4 million shares
Sean Aggarwal is probably best known in Silicon Valley for his roles as the vice president of finance for eBay, PayPal, and Trulia. But he was an early angel investor and adviser for Lyft (joining the board in 2016).
And he’s the Lyft executive with the largest Class A individual stake in the company, with just under 1.41 million shares, worth $95.6 million.
See the rest of the story at Business Insider