EMERGING TECH
EMERGING TECH
EMERGING TECH
Report: Uber to reveal details of IPO, expected on a valuation of $80-90B
Uber Technologies Inc. finally could reveal details of its forthcoming initial public offering Friday, with reports suggesting that it will price its shares at between $44 and $50 each.
Bloomberg, citing people familiar with the matter, said the offering will value Uber at between $80 billion and $90 billion, with Uber raising between $8 billion and $10 billion in the IPO. The numbers are slightly down from previous reports that had Uber going public at between $90 billion and $100 billion.
Unsurprisingly, the lower figure is believed to be a reflection on what has happened with the share price of Uber rival Lyft Inc. since it went public March 28. Although it initially popped, there was little joy for investors as shares in Lyft dropped below the initial price of $72 a share on its second day of trading. It has yet to recover, prompting shareholders to file a lawsuit against the company April 18.
As of the close of trading today, Lyft shares were priced at $56.34, down 22%. Uber will be looking to avoid a similar performance when it goes public sometime next month.
The valuation on Uber is notable because it values the company higher than a long list of prominent established U.S. companies. At $90 billion, Uber will have a valuation that places it higher than DowDuPont Inc., General Electric Co., Caterpillar Inc., Morgan Stanley and BlackRock Inc., according to CNBC.
It hasn’t all been doom and gloom for large tech companies going public. Pinterest Inc. and Zoom Technologies Inc. both popped on debut April 17 and unlike Lyft have stayed above their debut price ever since. Shares in Pinterest were priced at $28.80 at the close of trading Thursday, up 52% from an IPO price of $19 per share. Zoom closed the day at $65 per share, up 81% from its float price of $36 per share.
Uber enters its IPO not only with a headline-grabbing valuation but also significant losses. Uber reported $11.27 billion in revenue for 2018, up 42% from 2017. Technically, Uber booked a profit of $1 billion in 2018, an improvement of a loss of $2.6 billion in 2017, but only because of the sale of its businesses in Southeast Asia and Russia. Excluding them, Uber would have lost about $3 billion.
Photo: Pixabay
A message from John Furrier, co-founder of SiliconANGLE:
Support our mission to keep content open and free by engaging with theCUBE community. Join theCUBE’s Alumni Trust Network, where technology leaders connect, share intelligence and create opportunities.
- 15M+ viewers of theCUBE videos, powering conversations across AI, cloud, cybersecurity and more
- 11.4k+ theCUBE alumni — Connect with more than 11,400 tech and business leaders shaping the future through a unique trusted-based network.
About SiliconANGLE Media
SiliconANGLE Media is a recognized leader in digital media innovation, uniting breakthrough technology, strategic insights and real-time audience engagement. As the parent company of SiliconANGLE, theCUBE Network, theCUBE Research, CUBE365, theCUBE AI and theCUBE SuperStudios — with flagship locations in Silicon Valley and the New York Stock Exchange — SiliconANGLE Media operates at the intersection of media, technology and AI.
Founded by tech visionaries John Furrier and Dave Vellante, SiliconANGLE Media has built a dynamic ecosystem of industry-leading digital media brands that reach 15+ million elite tech professionals. Our new proprietary theCUBE AI Video Cloud is breaking ground in audience interaction, leveraging theCUBEai.com neural network to help technology companies make data-driven decisions and stay at the forefront of industry conversations.
