Lyft Shares Rise Ahead of Insiders’ First Chance to Sell Stock
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Some early investors in the ride-hailing company Lyft Inc., one of the most anticipated yet disappointing IPOs of the year, will get their first opportunity to sell shares Aug. 19.
The lockup expiry was brought ahead from Sept. 24, as the original date would have fallen within Lyft’s blackout period ahead of third-quarter earnings.
Lyft estimated that about 258 million Class A shares may become eligible for sale at the market open Aug. 19. The company had 280 million shares outstanding as of July 31, according to Bloomberg data. Shares gained as much as 1.4% in New York on Aug. 16.
In a report published after Lyft’s earnings on Aug. 7, DA Davidson analyst Tom White said the company’s co-founders, Logan Green and John Zimmer, will not be selling shares at the time of the lockup expiry.
Lyft’s latest quarterly results, which surpassed expectations, outshone larger rival Uber Technologies Inc., which reported a “messy” quarter, analysts said. Lyft shares have fallen 12% since reporting earnings Aug. 7, while Uber shares have dropped 20% since reporting its earnings a day later.
