Lyft closes up 9% on first day of trading

Pink confetti fell from the ceiling Friday as Lyft co-founders Logan Green and John Zimmer celebrated their company’s IPO. The stock offering was a bona fide success, with shares selling for $87.24 apiece Friday morning — 21 percent higher than Lyft’s initial $72 share price — and closing at $78.29 per share.

Lyft raised roughly $2.3 billion Thursday evening, hours before ringing the opening bell of the Nasdaq on Friday around noon Pacific. The IPO gave Lyft an initial market cap of about $24 billion, representing an 11x revenue multiple and a 1.6x step-up from its most recent private valuation of $15.1 billion.

On Bloomberg TV, Lyft’s co-founders discussed the company’s long-term prospects, including international growth, autonomous vehicle plans, the future of car ownership and insurance.

“We are confident that the business will be very profitable,” Green told Emily Chang. “We are making tremendous progress going after this once-in-a-generation shift where this entire industry, a $1.2 trillion market, could flip from an ownership model to a service model and we are leading the way there.”

The pair opted to host their IPO in Los Angeles, Lyft’s largest market.

“We want to make a point that you can both invest in communities and build a great business,” Zimmer said. “It was fun to ring the bell with several members of our driver community and have many of them participate in our IPO because we gave them a bonus to do so.”