S'pore ride-hailing firm Ryde holds steady in US trading debut

IPO proceeds to propel growth as firm ventures into new markets, invests in tech

- Timothy Goh

Ride-hailing and carpooling firm Ryde closed flat on its first day of trading on the New York Stock Exchange (NYSE), as it joined a growing number of Singapore companies listed in the United States.

After opening at US$4 on March 6, the counter fluctuated between that level and US$5, before settling unchanged, with around 2.7 million shares traded during regular hours. The shares were down 2.25 per cent after-hours as at 8pm New York time.

Ryde said in a statement on March 6 that proceeds from its initial public offering (IPO) in the US will boost its competitiveness and propel growth as it "ventures into new markets and invests in technological improvements".

Founder and chief executive Terence Zou said: "The use of proceeds from our IPO will play a pivotal role in the expansion of Ryde's services globally and disrupting the incumbents in the industry."

He also described Ryde's debut on the NYSE as a "historic achievement", but added that the firm faced challenges and hurdles which have tested its "determination and resolve".

Ryde's debut in the US comes amid its cash burn and widening losses in recent years.

According to its IPO prospectus, the firm posted revenue of $8.8 million in 2022, primarily driven by its carpooling and ride-hailing services, which accounted for about three-quarters of its total revenue. The remaining revenue of about $2.2 million came from advertising and the firm's Ryde+ membership.

But it registered widening losses of $1.24 million in 2021 and $4.96 million in 2022. It also incurred a loss of nearly $4 million for the six months ended June 2023.