Uber expected to debut at market value of up to US$90 billion
The firm is considering to debut at share prices of between US$44 and US$50, making its market valuation to be at US$80 billion and US$90 billion, which would be less than the initial US$100 billion valuation anticipated.
Ride-hailing giant Uber is considering to debut at share prices of between US$44 and US$50, making its market valuation to be at US$80 billion and US$90 billion.
The firm’s keenly-anticipated initial public offering (IPO) of shares is slated to start next month, and its IPO is likely to be influenced by the interest from investors during its roadshow to market its listing, Bloomberg reported on Thursday.
Earlier speculations have predicted for Uber to be raising around US$10 billion worth of stock. Uber is said to be planning to kick off its investor roadshow in the final week of April and begin trading on the New York Stock Exchange in early May.
Most of the shares sold would be issued by the company, while a smaller portion would be owned by Uber investors who are cashing out.
At a valuation of between US$80 billion and US$90 billion, it would be less than the initial US$100 billion valuation anticipated, and less than the optimistic US$120 billion some investment bankers had estimated earlier.
The most recent valuation for Uber prices it at US$76 billion.
According to Reuter’s sources, Uber is seeking a tapered down valuation as it is influenced by Lyft’s recent IPO, which tanked days after its debut price of US$72.
Uber’s IPO will be the largest listing in years
On April 11, Uber filed documents for its IPO. The IPO will be the largest since Chinese e-commerce giant Alibaba Group’s IPO in 2014 which raised US$21.8 billion at US$68 per share.
The IPO will be one Wall Street highly-anticipates, as Uber is notably one of Silicon Valley’s most closely watched companies.
San-Francisco headquartered Uber is a tech giant with more than one business vertical. In addition to its core business ride-hailing, it also runs other verticals including bike and scooter rentals, food delivery, and an expensive autonomous car business.
The tech firm’s platform connects passengers to drivers through an app and has presence in more than 70 countries and over 700 cities worldwide. According to data analytics firm Business of Apps, the Uber platform completes 15 million road trips every day.
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