SAN FRANCISCO, United States — Pinterest is seeking to raise as much as $1.28 billion in an US initial public offering that could value the company below the amount it reached in its last private valuation.
The maker of online inspiration boards is offering 75 million shares for $15 to $17 apiece, according to a filing Monday. Based on the total number of Class A and Class B shares outstanding after the offering, if it priced at the top of the range, that would give Pinterest a market valuation of about $9 billion, according to data compiled by Bloomberg. Its fully diluted value could be higher.
In its last private funding round in 2017, the company raised $150 million for a total valuation of about $12.3 billion.
San Francisco-based Pinterest accelerated its offering to capitalise on the hot US market for IPOs, which expects to see a flurry of US tech companies go public this year. In March, number two US ride-hailing giant Lyft priced its shares at $72 in the largest offering from a tech upstart since Snap went public two years ago. Lyft was the biggest US listing after the partial government shutdown dampened first quarter listings’ momentum. After dipping below the IPO price, Lyft is now trading around $75.
Pinterest, which acts like a digital scrapbook, earlier revealed about $756 million in revenue from online advertisements in 2018, a 60 percent growth rate that accelerated from the year prior. Its net loss shrunk to $63 million in 2018 from $130 million in 2017. Pinterest says 265 million people use Pinterest at least once a month.
The share sale will be led by banks including Goldman Sachs Group, JPMorgan Chase & Co and Allen & Co Pinterest applied to list on the New York Stock Exchange under the ticker PINS.
By Olivia Zaleski; editors: Elizabeth Fournier, Amy Thomson.