Lime shares surged 8% on their first day of trading after the electric bike and scooter rental company raised $174 million through its initial public offering. The San Francisco-based firm, formally known as Neutron Holdings Inc., priced shares at $25 before opening at $27, signaling strong investor demand for the mobility platform backed by Uber Technologies Inc.

CEO Wayne Ting and President Joseph Kraus participated in the offering alongside co-founder Brad Bao, collectively selling 276,731 shares as part of the 6.68 million share sale. The IPO marks a significant milestone for the shared micromobility sector, which has struggled with profitability concerns and regulatory challenges across major cities globally.

Lime operates rental fleets in over 100 cities worldwide, competing with Bird and other electric scooter companies that have faced similar public market debuts. The offering valuation reflects growing confidence in sustainable urban transportation solutions despite past industry headwinds.

The stock's positive debut suggests investors are warming to the long-term potential of electric mobility rentals, though the company must prove it can navigate the complex economics of fleet maintenance, city regulations, and seasonal demand fluctuations that have plagued competitors.