1888 Press Release – Pinterest is a visual bookmarking tool for saving and discovering creative ideas.
Pinterest set a price range for its initial public offering that will value the company below its last private-market peg of $12 billion, raising questions about investor demand for prominent but unprofitable technology companies that are racing toward the stock market.
“We watched in dismay as Pinterest said it planned to price its offering at $15 to $17 a share. At the high end of that range, the digital pin board company would be valued at about $11.3 billion”, said Brian Wu COO of KCI Asia Limited.
Pinterest’s price range dampens some of the fervor over a wave of tech offerings this year, which had promised to generate piles of new wealth in Silicon Valley. It follows Lyft the ride-hailing company, which is deeply unprofitable.
While the offering created a great deal of hype and Lyft’s shares rose on their first day of trading, the stock fell below its offering price on the second day of trading.
Wu says,” We expect that not all companies will perform at their best once they hit the market, but we had hoped that Pinterest would have come in at a higher price”.
Although at a lower figure there is a lot of up potential said Wu. But we will have to see how the market reacts on the day and how the fans and most importantly the investors react.
https://www.kci-asiahk.com
