Ride-sharing company Lyft is set to go public this week. The company is one of several highly anticipated IPOs, with competitor Uber and content-sharing website Pinterest also expected to make their public market debuts this year. The wave of IPOs comes amid a strong start to the year for U.S. equities. The S&P 500 was up 12.2% for the year to date through March 25, 2019, providing favorable timing for newly listed companies that hope to benefit from broader market tailwinds.
Lyft is one of many private firms that have grabbed the attention of mutual fund managers in recent years. As startups gained traction with consumers and raised huge sums of money in the private markets, they delayed their IPOs, preferring to build their businesses without the pressure that comes with being publicly traded. Some mutual fund managers, who were already doing due diligence on such names to understand the competitive dynamics facing their public company holdings, decided to invest privately, with prominent fund companies such as Fidelity and T. Rowe Price leading the charge.
Katie Rushkewicz Reichart, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.