Pinterest plans to raise up to $1.3 billion in its IPO

Pinterest, one of a list of big-name technology companies set to float this year, said yesterday that it planned to raise up to $1.3 billion in its offering, providing a valuation of about $11.3 billion that fell short of the price of its most recent private fundraising round. The valuation for the online scrapbooking website… could prove an ominous sign for Wall Street’s keen interest in new tech listings in the months ahead. Pinterest is planning to sell 75 million shares at $15-$17 each in its initial public offering… Even at the top end of the range on a fully dilated basis, its valuation would be below the $12 billion at which it was last priced by investors in 2017. So-called “downround” IPOs are considered a stigma for fast-growing tech companies, but they can be quickly forgotten. Payments company Square was valued in its 2015 IPO at less than half the $6 billion it had once been judged to be worth, but it now has a stock market value of $31 billion..Among Pinterest’s venture backers, the real winner will be Bessemer Venture Partners, which counts Skype and LinkedIn among its successes. Bessemer first invested in Pinterest in May 2011, when the site was reportedly valued at $40 million. Its stake is now worth as much as $1 billion, based on a $17 per share price.
 
Nicole Bullock, Hannah Murphy, Richard Waters and Tim Bradshaw

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