Uber plans to set IPO price

Uber plans to set IPO price

Uber Technologies has decided it will seek to sell around $10bn (€8.8bn) worth of shares in its initial public offering, according to sources.

An IPO of this size would make Uber one of the biggest technology IPOs of all time, and the largest since that of Chinese e-commerce giant Alibaba in 2014. Uber is seeking a valuation of between $90bn and $100bn, influenced by the poor performance of smaller rival Lyft’s shares following its IPO late last month, the sources said.

Investment bankers previously told Uber it could be worth as much as $120bn. Uber most recently was valued at $76bn in the private fundraising market. Most of the shares sold would be issued by the company, while a smaller portion would be owned by Uber investors cashing out, one of the sources said.

Uber plans to make its IPO registration with the US Securities and Exchange Commission publicly available later today, and will kick off its investor roadshow during the week of April 29, putting it on track to price its IPO and begin trading on the New York Stock Exchange in early May, the sources said.

Lyft’s IPO priced at the top end of its upwardly revised range last month, assigning it a valuation of more than $24bn in an offering that raised $2.34bn.

But the stock has traded poorly since debuting on the Nasdaq on March 29, as concerns about the startup’s path to profitability have become more prominent. The shares have traded well below their $72 IPO price.

In moderating its valuation expectations, Uber is showing a realism that is being increasingly adopted by Silicon Valley unicorns, as stock market investors push back against some of the lofty price tags sought.

Earlier this week, Pinterest set a price range for its IPO that values it below the $12bn mark at which the online image-search company sourced its last private fundraising in 2017.

In addition to ride-hailing, Uber’s business includes bike and scooter rentals, freight hauling, food delivery, and a self-driving car division.

During the IPO roadshow, Uber’s chief executive, Dara Khosrowshahi, will be tasked with convincing investors that he has changed the firm’s culture and business practices after a series of embarrassing scandals.

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.


More on this topic

Uber to test flying taxis in MelbourneUber to test flying taxis in Melbourne

Uber fiasco may hit WeWorkUber fiasco may hit WeWork

Uber drops $12bn in valueUber drops $12bn in value

Uber begins trading nearly 7% below IPO priceUber begins trading nearly 7% below IPO price

More in this Section

Liberty London sold to new owners in €334m dealLiberty London sold to new owners in €334m deal

Supermarkets cash in as TV and jewellery shops fail to shine in early summer sales, says major surveySupermarkets cash in as TV and jewellery shops fail to shine in early summer sales, says major survey

Green light for €500m data centre in WicklowGreen light for €500m data centre in Wicklow

UK budget deficit swells as June borrowing hits four-year highUK budget deficit swells as June borrowing hits four-year high


Celebrate the anniversary by finding lift off without even leaving the earth, at these stateside visitor centres and museums, says Sarah Marshall.America’s top space-age attractions to celebrate 50 years since the moon landing

For bookworms and classic movie buffs, the notion of a London park will forever conjure up images of Mary Poppins with the Banks children in tow.Inside/ Out: Park life is looking up in London by Eve Kelliher

“Does anyone want to be my friend?” roared my five year old as he walked into the playground at our French campsite on holidays.Learner Dad: 'It can be heartbreaking watching your kids try make friends on holiday'

These handy product edits are so useful for travelling, says Katie Wright.Palettes pack a punch: The travel must have

More From The Irish Examiner