By Ateev Bhandari
(Reuters) -Via Transportation is targeting a valuation of up to $3.50 billion in its initial public offering, the transit technology maker said on Wednesday, joining a wave of companies aiming to list their shares on U.S. exchanges this fall.
Via and some of its existing investors are seeking to raise up to $471 million by offering 10.7 million shares priced between $40 and $44 apiece.
IPO markets have resumed a long-awaited recovery amid an equity market rally fueled by robust tech
earnings and growing expectations of interest rate cuts in the short term. The fall window kicked off on Tuesday with long-awaited road show launches.
"Rate cuts are a nice tailwind, but much of the current momentum stems from pent-up demand after two to three years of minimal IPO activity," said Jeff Zell, senior research analyst at IPO Boutique.
Blowout debuts from design software maker Figma and crypto exchange Bullish have also enhanced the appeal of first-time share sales.
At the top of its proposed range, Via's $3.5 billion targeted valuation would be at par with the one it secured in a 2023 funding round led by venture firm 83North.
Rising urban congestion and environmental concerns have led to calls on administrations worldwide to develop sustainable mixed-mode public transit systems.
Founded in 2012, New York-based Via's technology combines on-demand shared rides and intelligent routing to optimize public transit systems in hundreds of cities across more than 30 countries.
Investment management firm Wellington Management has indicated interest in purchasing up to $100 million worth of shares in the IPO, Via said.
Goldman Sachs, Morgan Stanley, Allen & Company and Wells Fargo are the lead underwriters for Via's offering. The company plans to list its shares on the New York Stock Exchange under the ticker symbol "VIA".
(Reporting by Ateev Bhandari in Bengaluru; Editing by Shilpi Majumdar and Shailesh Kuber)
