By Rishab Shaju and Arasu Kannagi Basil

(Reuters) - Transit technology maker Via Transportation ( VIA ) was valued at $3.5 billion on Friday after its shares fell 4.4% at open in their New York Stock Exchange debut.

The stock opened below its $46 offer price before rebounding to close up 7.6% at $49.51.

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 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 have 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.