Uber prices its stock at US$45 per share, raising US$8.1 billion
The firm priced its stock at US$45 per share, which is at the lower end of the expected range of US$44 to US$50 per share. At US$45 per share, the firm will raise US$8.1 billion, valuing the company at US$82.4 billion.
The firm priced its stock at US$45 per share, which is at the lower end of the expected range of US$44 to US$50 per share. At US$45 per share, the firm will raise US$8.1 billion, valuing the company at US$82.4 billion. The IPO was oversubscribed.
Prior to the latest valuation, Uber was previously priced at US$76 billion in the private market.
Uber’s valuation post-listing is a step down from the bullish US$120 billion price tag investment bankers had placed on the firm last year.
But the toned-down price tag is not a surprise in light of the market turbulence affected by trade tensions such as the ongoing tariff war between the United States and China.
Uber’s rival Lyft debuted in late March at the high end of its valuation, but it has seen its stock slump 27% lower from its IPO price, as investors were concerned with the firm’s track to profitability. The failure of its rival’s listing led Uber to lower its expectations for its debut for fear of the same investor sentiment hitting its stock.
In spite of the tapered down valuation, Uber’s listing marks it as one of the largest technology IPOs of all time, and the largest since that of Chinese e-commerce giant Alibaba Group in 2014.
Since it started 10 years ago, Uber has grown to the world’s largest ride-hailing company.
The San-Francisco headquartered firm is viewed as a tech colossus 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, over 700 cities worldwide.
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