Lime, the electric bike and scooter rental operator supported by Uber, has submitted a U.S. initial public offering filing that places a potential valuation for the company at up to $1.66 billion. The San Francisco-based firm outlined plans for a sale of common stock that would involve roughly 6.96 million shares priced between $24 and $26 apiece.
Under the offering terms disclosed in the filing, Lime - which legally operates as Neutron Holdings - intends to sell 6,679,791 shares of common stock. An additional 276,731 shares will be offered by certain selling stockholders. The company made clear in its filing that it will not receive any proceeds from the shares sold by those selling stockholders.
Lime noted that it operates short-term rentals of electric bikes and scooters in approximately 230 cities across 29 countries. The firm, founded in 2017, is led by Wayne Ting, a former executive at Uber.
In the filing, Lime stated its intention to list on the Nasdaq exchange under the ticker symbol "LIME." The underwriting group includes Goldman Sachs, J.P. Morgan and Jefferies as lead underwriters. Additional bookrunners on the deal are Evercore ISI, Citizens Capital Markets, KeyBanc Capital Markets, Needham & Company and William Blair.
The proposed price range and the roughly 6.96 million shares in the offering establish the headline mechanics of the deal; the final valuation and proceeds will depend on the ultimate pricing and any other terms set at completion of the offering. The filing reflects Lime's intent to enter the public markets and identifies the banks that will coordinate the transaction and distribute shares.
Context and implications - The filing provides the core details that prospective public investors and market participants will evaluate as the IPO process advances. The split between shares offered by Lime and those offered by selling stockholders - including the company's statement that it will not receive proceeds from the selling stockholders' portion - is a material disclosure about which capital will flow to the company at close.
As Lime moves through the listing process, market interest in the proposed $24 to $26 price band and the ultimate reception of the shares will determine the realized valuation and the allocation of newly traded stock among investors.