An IPO of this size would make Uber one of the biggest technology IPOs of all time, and the largest since that of Chinese e-commerce giant Alibaba Group Holding in 2014. Uber is seeking a valuation of between $90 billion and $100 billion, influenced by the poor performance of smaller rival Lyft Inc’s shares following its IPO late last month, the sources said. Investment bankers previously told Uber it could be worth as much as $120 billion. Uber most recently was valued at $76 billion in the private fund-raising market.
Most of the shares sold would be issued by the company, while a smaller portion would be owned by Uber investors cashing out, one of the sources said. Uber plans to make its IPO registration with the US Securities and Exchange Commission publicly available on Thursday, and will kick off its investor roadshow during the week of April 29, putting it on track to price its IPO and begin trading on the New York Stock Exchange (NYSE) in early May, the sources said.
The sources cautioned that the plans are still subject to change and market conditions, and asked not to be identified because the matter is confidential. A representative for Uber declined to comment.
Lyft’s IPO priced at the top end of its upwardly revised range last month, assigning it a valuation of more than $24 billion in an offering that raised $2.3 billion. But the stock has traded poorly since debuting on the Nasdaq on March 29, as concerns about the startup’s path to profitability have become more prominent.
News credit : Indiatimes