Carl Icahn sold Lyft stake before IPO netting big money
Billiard investor Carl Icahn sold his approximately 2.7% stake in Lyft Inc. before the equestrian center's original public offer last week, according to people familiar with the case.
| Ticker | Security | Last | % Chg | |
|---|---|---|---|---|
| LIFT | LYFT INC. | 70.00 | +1.03 | + 1.49% |
Jonathan Christodoro, a former Icahn Capital LP CEO who sat on the Lift Board last month, banned Mr. Icahn with the buyer of the stake worth around $ 550 million at the stock market, some of the people said. The buyer's identity could not be learned.
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The exact timing and motivation of Mr. Icahn's move was not clear, though he had held the stake for about four years ̵[ads1]1; a relatively long period for him. The activist investor, who rarely invests in private companies, had been satisfied with Lyft's plan to use conviction of shares to give his two founders almost voting rights, some of the people said.
It is not clear what price Mr. Icahn received for his shares, but the investment was certainly a success for the 83-year-old. He had invested around $ 100 million in Lift in 2015 for a $ 2.5 billion valuation, and later added $ 50 million on the same valuation. The IPO value heff of $ 24 billion, or $ 72 per share, although he probably sold it for a little less than that.
Lifting shares have been squeezed in their first trading week. After pricing ahead of their expected reach and increasing 8.7% on Friday's debut, they tumbled 12% Monday and were fleeting Tuesday before recovering any Wednesday. The stock is currently changing hands for around $ 71.25. Several downbeat analyst reports published after the IPO contributed to pushing the shares.
Lifted before investors are prohibited from selling shares until a lockout expires 180 days after the offer, and the buyer of Mr. Icahn's ownership is subject to it. 19659015] Mr. Christodoro, Mr. Icahns appointed on the Lyft board, stepped out in March, the company said in a filing that month without giving a reason. Mr. Icahn could have chosen to replace Mr. Christodoro with another representative, but did not.
Herr. Christodoro, who left Mr. Icahn's investment firm in 2017, serves on several boards, including PayPal Holdings Inc. He personally invested in Lyft, with an approximately $ 900,000 stake from Wednesday, according to a previous filing. He was present on Friday morning when the Lift Founders Logan Green and John Zimmer called Nasdaq's opening bell at a former car dealership in downtown Los Angeles, surrounded by employees, drivers, and their families.
