Uber reportedly plans IPO for early May

The ride-sharing company is rumoured to be planning its initial public offering (IPO) for early May, according to a report by Reuters.

According to Reuters sources, people close to the matter said that Uber will issue its required public disclosure and launch its investor roadshow in April.

Uber plans to sell around $10 billion worth of stock in IPO

Reuters sources said on Tuesday, Uber has decided it will seek to sell around $10 billion (£7.7 billion) worth of stock in its initial public offering (IPO) and will make public the registration of the offering on Thursday.

Uber plans to kick off its investor roadshow during the week of 29April, according to sources.

Uber vs Lyft

Uber’s anticipated IPO is set to kick-off weeks after its rival ride-sharing company Lyft, which announced the official release of their IPO on 29 March.

Lyft debuted its initial public offering at $72 a share with a $24 billion valuation. The ridesharing app launched on Wall Street with the symbol, ‘LYFT.’

Many analysts say Lyft has gained an advantage over Uber, as the company’s IPO date was announced while Uber was still in preparations. Uber has declined to comment, despite sources claiming an April release.

Uber seeks higher than the estimated valuation

Lyft and Uber have often been neck-and-neck with their competitive offers. However, Uber’s business is much larger than Lyft’s business, and both firms filed confidential paperwork for an IPO in December, at the same time.

Uber has recently valued its company at $US76 billion ($108 billion) in the private market. It’s seeking a valuation as high as $US120 billion, however, some analysts estimated its value closer to $US100 billion based on financial figures.

Uber's revenue in 2018 was $US11.3 billion, while its gross bookings from rides were $US50 billion.

While, Lyft's 2018 revenue was $US2.2 billion, with $US8.1 billion in gross ride bookings.

Analysts have predicted that both companies could benefit from Lyft joining the public markets first. Uber could use market euphoria to its advantage, demanding a high valuation.

Dara Khosrowshahi, chief executive officer of Uber, has previously said a culture change is a work in progress.

Take a position on Uber’s potential market capitalisation with our grey market


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Looking for an IPO opportunity?

Uber is expected to launch its IPO in 2019. Find out what the valuation could be when it arrives on the stock market, as well as how you could trade it.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.