Lyft’s IPO minted plenty of millionaires, such as co-founder and CEO Logan Green, co-founder and president John Zimmer, and a handful of the company’s loved ones.

Lyft might not be earning any cash , but its own executives and investors certainly are.
Before their holders can cash in the worth of these stakes could change. This ’s because Lyft’s executives and major shareholders entered into a customary lock-up period that prevents them from selling their shares for 180 days from the date of their company’s registration statement (March 28).

This sort of dual-class share construction has become more and more popular as after taking public, creators look to keep control of their businesses.

Shares of Lyft Inc. gained 8.7percent in their first-ever day of gambling (March 29), closing at $78.29 once they priced at $72 in the initial public offering. The profit augurs well for Lyft; the firm had increased its IPO price range earlier in the week because of demand from investors. It s also an indication that the market is hungry for consumer-focused technology in a year when many such businesses have signaled their intention.

Japanese net and electronics firm Rakuten, Lyft’s single largest shareholder, finished the day with $2.46 billion worth of Class A common stock. Alphabet’s stake was worth only $924 million at the 72 IPO cost, but that was pushed by the first-day profit up .

Meal-kit firm Blue Apron, for example, went public at $10 a share in June 2017. By the time the majority of its own lock-up period for pre-IPO shareholders expired, the company’s stock price had shrunk almost 60 percent to $4.03.
One of the chief questions with any IPO is that ’s getting rich. In Lyft’therefore, the firm ’s five biggest investors completed the first day of trading with stock holdings valued at $1 billion or more–unicorns within their own right.

Green and Zimmer each maintain an equal number of shares of Class A common stock, but Green has about 2.6 million more units of Class B common stock, which makes his bet worth also granting him outsized control over the firm. Class A common stock includes one vote per share, while Class B confers 20 votes per share. Lyft sold Class A stock in its offering.