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Uber seeking valuation of up to US$91.5bn in IPO

Uber set a target price range of US$44 to US$50 in a regulatory filing
The targeted valuation is less than the US$120bn investment bankers had told Uber it could get last year

Uber Technologies Inc revealed on Friday that it is looking to fetch a valuation of up to US$91.5bn in its initial public offering.

The ride-hailing company set a target price range of US$44 to US$50 in a regulatory filing.

It plans to sell 180 million shares to raise up to US$9bn. Existing investors will sell a further 28 million shares for up to US$1.35bn.

READ: Uber Technologies files for IPO

PayPal has agreed to buy US$500mln in stock in a private placement at the price the float is eventually set at.

Uber expects to price the IPO on May 9 and begin trading on the New York Stock Exchange the next day, according to Reuters.

In the regulatory filing, Uber reported a net loss attributable to the company for the first quarter of about US$1bn, on sales of about US$3bn.

Uber’s management will spend the coming days promoting itself to public markets investors.

The company is likely to be grilled over when it will turn a profit, how it plans to tackle the shift towards autonomous vehicles and whether it can handle higher costs related to changes to minimum wage rules.

Uber chief executive Dara Khosrowshahi will also need to persuade investors that he has changed the company’s culture and business practices after a string of scandals, including sexual harassment allegations, a data breach and the use of illicit software to evade authorities.

The IPO valuation Uber is aiming towards is less than the US$120bn investment that bankers had told the company it could get last year. Uber fetched a US$76bn valuation in its last private fundraising round in 2018.

The lower-than-expected valuation target comes after a weak start to trading by smaller rival Lyft Inc. Shares in Lyft, which floated last month, were down 20% from their IPO on Thursday due to concerns about its strategy to turn a profit.

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Uber Technologies Inc Timeline

April 12 2019

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