6-3-2024 (SINGAPORE) Singaporean ride-hailing and carpooling firm Ryde initiated its entry into the US stock market, joining a growing list of Singapore-based companies. The startup aims to raise $12 million through its initial public offering (IPO), issuing three million ordinary shares at $4 each. Ryde is set to begin trading on the New York Stock Exchange on March 6 under the ticker symbol “RYDE.”
Founded in 2014, Ryde differentiated itself from competitors like Grab and Uber by emphasizing its carpooling service, as outlined in its IPO prospectus. In 2022, the platform generated $8.8 million in revenue, with carpooling and ride-hailing services contributing approximately three-quarters of the total. The remaining revenue, about $2.2 million, came from advertising and Ryde+’s membership.
Despite robust revenue, the company reported recurring losses of $4.96 million in 2022 and $1.24 million in 2021, according to prospectus financials. Additionally, for the six months ending June 2023, Ryde incurred a loss of nearly $4 million. The prospectus raised concerns about the company’s ability to continue as a “going concern,” given its negative working capital of $461,000 and a shareholders’ deficiency nearing $5 million by the end of 2022.
Negative working capital and shareholders’ deficiency indicate that a company’s liabilities surpass its assets. Ryde’s prospectus disclosed that its management initiated a strategy to raise debt and equity, including funds from the IPO.
While Ryde had previously announced plans to list on the Singapore Exchange’s Catalist board in March 2022 with a targeted valuation of $200 million, the company shifted its focus to the US market. The decision was influenced by factors such as global recognition, the visibility of US exchanges, and higher liquidity.
