Transit technology company Via Transportation was valued at $3.5 billion on Friday after its shares fell by 4.4% in their New York Stock Exchange (NYSE) debut.
The stock opened at $44, which was below its offer price of $46.
Via and its selling shareholders raised $493 million by selling 10.7 million shares, which were priced above the marketed range of $40 to $44.
The U.S. IPO market has seen a revival, as easing trade tensions and growing expectations of interest rate cuts have increased investor interest in new offerings. This marks the busiest week for U.S. IPOs since 2021.
Unlike traditional ride-hailing platforms, Via works with existing public transit networks rather than operating independently.
The New York-based company provides software and operational services to cities, transit agencies, schools, and other institutions. It combines on-demand ride sharing with intelligent routing to optimize public transit.
While the business is expanding, it remains unprofitable. For the three months that ended on June 30, Via reported revenue of $107.1 million but had a net loss of $21.2 million.
According to Kat Liu, a vice president at IPO research firm IPOX, “The model that Via offers brings its own challenges: lower margins, slower scaling across jurisdictions, and dependence on local relationships and regulatory compliance.” She added that exposure to public-sector budgets and regulatory complexity continues to pose risks.
Changing climatic conditions, increasing congestion, and rapid urbanization have made it more and more important to enhance public transit systems worldwide.
Even so, the performance among “tech” IPOs has varied.
Edward Best, a partner at Willkie Farr & Gallagher, noted, “While tech IPOs have been the most prominent this year, the standout performers have largely been in or related to AI and fintech. Other tech segments have seen mixed, though generally positive, results.”
Based on data from Dealogic, Via is one of the largest transportation-related tech IPOs in the U.S.
