3 Reasons Why We’re Tracking Lime’s Road to IPO
As you know we keep a close watch on the IPO market, and new filings for those transactions are part of our ongoing due diligence for our positions in Morgan Stanley ($MS) and Bank of America ($BAC).
Today we saw that the Uber ($UBER)-backed electric bike and scooter rental startup Lime has filed for an initial public offering. The company, which is incorporated as Neutron Holdings, intends to list on Nasdaq under the ticker symbol “LIME.”
In reviewing the S-1 filing with the SEC, we find Morgan Stanley is co-lead underwriter on the transaction with Goldman Sachs ($GS). Details about the number of shares being sold, the targeted price range and related items were not listed in the S-1, but we’ll get more on those in the coming days and weeks. What the filing does contain is an overview of Lime’s business and the overall micromobility business as well as a number of buzzy phrases like “self-reinforcing, virtuous network effect.” It also shows the company generated an operating loss in Q1 2026 despite its revenue for the period climbing to just over $170 million.
As a rule, we avoid IPOs and that operating loss is another flag for us. However, we will want to track the Lime IPO carefully for a few reasons.
First and as hinted at above, Morgan Stanley is involved.
Second, the pricing relative to expectations and aftermarket performance will be something to watch as an indicator of the overall IPO market.
Third, and perhaps what many of you won’t see coming is SuRo Capital ($SSSS) is an investor in Lime. At ~1.1% of its portfolio, it’s not a large position for SuRo but once public it should eventually provide SuRo will capital to help fund its note repurchase or its next dividend payment to shareholders. The larger the deal, the more that 1.1% position will be worth, and that will keep us interested.
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At the time of publication, TheStreet Pro Portfolio was long BAC, MS and SSSS.
