Pinterest Valued At $12.6bn Before Market Float

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According to figures officially released from the company, Pinterest has been valued at $12.6bn as it prepares to float on the stock exchange, with share prices set to begin at $19 when it debuts on the market in the coming weeks.

The online scrapbooking service, which has over 250 million users worldwide and generates major cash through ad revenue, had planned to float at a lower share price of between $15 and $17, but this sudden jump in share price might indicate that Pinterest has high hopes for the future of the company when it floats on the New York Stock Exchange.

Unicorn Floats

Pinterest is just the latest in a series of ‘unicorn’ companies to float on the stock market. ‘Unicorns’ are companies that have yet to make any sort of profit yet are valued for billions of dollars.

In a flotation report, the company stated that it believed it might never report income and has yet to make a profit from its service.

The online-based company is hoping that, by floating on the stock market, it may generate some much-needed income. Recent events have shown the company moving towards a positive cash outflow, with sales increasing slowly over the last year.

Investments by venture capitalists and market experts, they hope, will continue to raise their revenue streams whilst helping them develop the site.

Outside Investors

The company is the most recent in a line of ‘unicorn’ businesses primarily based in Silicon Valley that have chosen to float their shares – Uber and Lyft, both of which report high losses despite being valued at billions of dollars each – made news this week with similar profit outlooks to Pinterest.

There are also reports of AirBnB and WeWork both looking to open up their companies to outside investors.

Pinterest’s movement into the stock market might just be the signifier of investor interest if their debut floats well in early trading.

Pinterest describes itself as a productivity and planning site, where users can ‘Pin’ ideas and thoughts about projects, events and more.

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