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Pinterest surprises by setting its IPO price range at $15 to $17 per share

Pinterest surprises by setting its IPO price range at $15 to $17 per share
[Photo: Aditya Vyas/Unsplash]

The image discovery social media site has announced that shares will cost between $15 to $17 in its initial public offering. That’s according to a filing the company made with the Securities and Exchange Commission, reports CNBC.

What’s interesting about the price range Pinterest has chosen is that it would value the company at between $8.5 billion and $11 billion. That’s below the last private round of investment Pinterest received, which valued the company at $12 billion.

So why aim for a list price that values your company less than it’s ostensibly worth? The lower price range may have been due to Lyft’s lackluster IPO earlier this year. The ride sharer priced its IPO shares well above its last private valuation, and by the end of its first full trading day Lyft shares tanked. By pricing its IPO more moderately, shares in Pinterest could pop the first full day they’re traded, which would provide good optics for the company.

The news of the IPO price came as the company is set to launch its pre-IPO investor roadshow today to drum up excitement for the stock. The company will list on the New York Stock Exchange under the symbol “PINS.” Pinterest is expected to hold its IPO this month, though no exact date has been confirmed yet.

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