Transit tech firm Via valued at $3.5 billion as shares fall in NYSE debut

Transit technology maker Via Transportation was valued at $3.5 billion on Friday after its shares fell 4.4% in their NYSE debut.

The stock opened at $44, below the $46 offer price.

Via and selling shareholders raised $493 million by selling 10.7 million shares, priced above the marketed range of $40 to $44.

The U.S. IPO market has revived as easing trade tensions and rising expectations of interest-rate cuts lift investor appetite for new issues, creating 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, combining on-demand ride sharing with intelligent routing to optimize public transit.

The business is expanding, but it remains unprofitable. For the three months ended June 30, Via reported revenue of $107.1 million and a net loss of $21.2 million.

“The model that Via offers brings its own challenges: lower margins, slower scaling across jurisdictions, and dependence on local relationships and regulatory compliance,” said Kat Liu, vice president at IPO research firm IPOX, noting that exposure to public-sector budgets and regulatory complexity continues to pose risks.

Changing climatic conditions, growing congestion and rapid urbanization has made it increasingly important to enhance public transit systems across the globe.

Even so, performance among “tech” IPOs has varied.

“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,” said Edward Best, partner at Willkie Farr & Gallagher.

Via is one of the biggest transportation-related tech IPOs in the U.S., according to data from Dealogic.

U.S. investors dumped equity funds in the week to September 10, booking profits at record highs and cutting exposure on caution over lofty valuations and geopolitical tensions in the Middle east and Ukraine.

According to data from LSEG Lipper, investors divested a net $10.44 billion worth of U.S. equity funds - the most since August 6 - in the most recent week.

The S&P 500 hit a record 6,592.89 on Thursday, lifted by expectations the Federal Reserve will cut interest rates three times this year, pushing its one-year forward price-to-earnings ratio to 24.33, well above the 10-year average of 19.38.

Large-cap equity funds lost a net $18.22 billion, the most in a week since June 18.

Investors also ditched mid-cap funds worth a net $912 million and small-cap funds worth $442 million.

Sectoral funds bucked the trend with a third week of net inflows, to the tune of $3.77 billion, thanks to $3.42 billion flowing to the technology sector.

Investors allocated a net $8.61 billion to bond funds, extending purchases into a 21st successive week.

Short-to-intermediate government and treasury funds attracted a net $2.37 billion, and short-to-intermediate investment-grade funds $1.2 billion.

Net weekly inflows into municipal debt funds were at a three-week high of $2.18 billion.

Money market funds attracted net inflows for a third straight week, drawing $40.05 billion.