Pinterest prices IPO at $19 to begin trading Thursday

Pinterest’s $19-a-share introductory price at the New York Stock Exchange values the company at $11 billion. (Reuters)
Updated 18 April 2019

Pinterest prices IPO at $19 to begin trading Thursday

  • The online bulletin board popular among women is offering 75 million shares on the New York Stock Exchange
  • Pinterest’s introductory price is above the $15-$17 range that was predicted

SAN FRANCISCO: Pinterest on Wednesday announced it would price its initial public offering at $19 a share to begin trading on Wall Street the following day.
The online bulletin board popular among women is offering 75 million shares on the New York Stock Exchange with 11.25 million extra if required, raising between $1.4 and $1.6 billion, and will trade under the symbol “PINS.”
At $19, the introductory price is above the $15-$17 range that was predicted and which valued the company at $11 billion.
It comes in the wake of a lackluster market debut for ride-sharing platform Lyft, which began trading in March at $72 and closed at $59.51 on Wednesday.
Pinterest, which claims 250 million users, unveiled its plans to enter the stock market last month, one of the many tech startups to go the IPO route this year, after Lyft and before the expected entries of Uber, Airbnb, and Slack.
Pinterest said it had a turnover of $755.9 million in 2018, just under twice the 2017 fiscal year, and a net loss of almost $68 million, down to about half the figure for the year before.
Launched in 2010, Pinterest is a virtual bulletin board platform, with users decorating their boards with pictures showcasing interests including food, fashion, travel and lifestyle.
It allows users to share such images, although it does not call itself a social network. It also enables users to link to online shopping and other services to find items they have “pinned.”


British Airways burning through cash, CEO urges unions to engage

Updated 04 June 2020

British Airways burning through cash, CEO urges unions to engage

  • Job losses necessary as cash reserves of IAG, British Airways’ parent company, would not last forever

LONDON: The boss of British Airways said its parent company IAG was burning through $223 million a week and could not guarantee its survival, prompting him to urge unions to engage over 12,000 job cuts.
British Airways came under heavy attack from lawmakers in parliament on Wednesday, who accused it of taking advantage of a government scheme to protect jobs while at the same time announcing plans to cut its workforce by 28 percent.
Planes were grounded in March due to coronavirus restrictions, forcing many airlines to cut thousands of staff as they struggle without revenues. Airlines serving Britain now face an additional threat from a 14-day quarantine rule.
In an internal letter to staff seen by Reuters, Alex Cruz, the chief executive of British Airways said the job losses were necessary as IAG’s cash reserves would not last forever and the future was one of more competition for fewer customers.
BA also wants to change terms and conditions for its remaining workers to give it more flexibility by, for example, making all crew fly both short and long-haul.
Cruz said IAG, which also owns Aer Lingus, Iberia and Vueling, was getting through $223 million a week, meaning that it could not just sit out the crisis. The group had €10 billion of liquidity at the end of April.
“BA does not have an absolute right to exist. There are major competitors poised and ready to take our business,” Cruz said in the letter.
He urged two unions which represent cabin crew and other staff, GMB and Unite, to join in discussions to mitigate proposed redundancies. Pilots union BALPA is “working constructively” with the airline, he added.
Cruz also joined other airline bosses in criticizing Britain’s quarantine rule, due to come into effect on June 8, calling it “another blow to our industry.”