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Uber will seek to sell around $10bn worth of stock in IPO, according to Reuters report

The newswire said Uber is seeking a valuation of between $90bn and $100bn, lower than the $120bn investment bankers previously told Uber it could be worth

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The scaling back reflects the poor performance of smaller rival Lyft Inc’s shares following its IPO late last month, Reuters said

Uber Technologies Inc (PRIVATE-NA:UBER) to seek to sell around $10bn (£7.7bn) worth of stock in its initial public offering (IPO), according to a report from Reuters, which cited people familiar with the matter.

The newswire said Uber is seeking a valuation of between $90bn and $100bn, lower than the $120bn investment bankers previously told Uber it could be worth. Uber most recently was valued at $76bn in the private fundraising market, it added.

READ: Uber inks Middle Eastern expansion ahead of impending IPO with $3.1bn acquisition of rival Careem

The scaling back reflects the poor performance of smaller rival Lyft Inc’s (NASDAQ:LYFT) shares following its IPO late last month, Reuters said.

However, a float of that size would still make Uber one of the biggest technology IPOs of all time, and the largest since that of Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE:BABA) in 2014.

Reuters said Uber plans to make its IPO registration with the US Securities and Exchange Commission publicly available on Thursday, 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, according to its sources.

Lyft’s IPO was priced at the top end of its upwardly revised range last month, giving it an initial 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, trading on Tuesday at $67.44 a share, well below the $72 IPO price.

Uber operates in more than 70 countries and, in addition, to its ride-hailing app business, it includes bike and scooter rentals, freight hauling, food delivery, and a self-driving car division.

Last year, the firm had revenue of $11.3bn, but the company still lost $3.3bn, excluding gains from the sale of overseas business units in Russia and Southeast Asia.

Quick facts: Uber Technologies Inc

Price: 26.27 USD

NYSE:UBER
Market: NYSE
Market Cap: $44.74 billion
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