Pinterest, the “super unicorn” who is the social image sharing network, officially submitted the IPO to the Securities and Exchange Commission (SEC). Last month, it submitted the IPO prospectus in a confidential manner.
Previously, the network plans to go public in June, but now it may be ahead of April. The source familiar with the matter also said that it plans to raise $1.5 billion through the IPO, with a valuation of at least $12 billion.
On March 22nd, it announced also publicly traded on the New York Stock Exchange under the ticker symbol PINS. Pinterest is one of the most popular image sharing networking sites, with access to social networking sites second only to Facebook, Youtube, VK and Twitter.
The main source of revenue of it is the advertising service “Promoted Pins.” According to the file, Pinterest’s monthly users in the fourth quarter of 2018 were 265 million, compared with 216 million in the fourth quarter of 2017, which is an increase of 22.7%.
The company was still losing money last year, but the amount of losses is shrinking year by year. In 2018, advertising revenue was $756 million, a annual increase of 60%. The net profit was $63 million, which is lesser than the $1.338 billion loss in 2017. The main hidden danger lies in the excessive reliance on advertising as a source of income.
Goldman Sachs and JPMorgan Chase are the lead underwriters of Pinterest’s IPO. In 2017, Pinterest raised $150 million over the years and was priced at $12 billion by its confidential shareholders during its last fundraising round in 2017.
The network has employed 1,600 people in 13 cities globally, including Chicago, London, Paris, Berlin and Tokyo. It is also real that many of its users are from outside of the U.S.
In addition to Pinterest, the online car service provider Lyft plans to go public next week, with an estimated valuation of between $21 billion and $23 billion. Uber also plans to formally submit an IPO prospectus next month. The company’s estimate may reach $120 billion.