Uber seeks to raise $10bn through IPO, filing expected on Thursday
By Caoimhe Toman
Date: Wednesday 10 Apr 2019
(Sharecast News) - Uber Technologies is planning to raise about $10bn via a sale of shares through an initial public offering, with the company set to file its public registration on Thursday.
But as new investors came onboard, others were set to get off, with a small portion of the current shareholders set to sell out.
According to people familiar with the ride hailing company's decision, the intention was to seek a valuation of between $90bn and $100bn.
Some investors had reportedly peddled a valuation of up to $120bn, but the firm's board chose to be more conservative in light of the poor share price performance of rival Lyft following its own stockmarket debut, the same sources reportedly said.
And the most recent valuation from the private fundraising market was closer to $76bn.
Yet even at the latter valuation, the IPO would still rank as one of the biggest tech initial public offerings ever.
Uber was planning to file its IPO registration with the U.S. Securities and Exchange Commission on Thursday with a view to making its market debut on the NYSE in early May.
In the roadshow ahead of the IPO, Uber will have to convince investors that the most recent scandals - including allegations of sexual harassment, concealing data breaches, using illicit software to evade authorities and bribery - will not be repeated and that the company's culture and business practices have improved.
Two months before, Uber said that it generated $50bn in gross bookings in 2018, up 45% compared to 2017, although in the last three months of the year revenue growth slowed to a crawl, rising by 2% to $3bn, for full-year sales of $11.4bn.
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