Uber To Sell Stocks Worth $10 Billion In IPO

Uber To Sell Stocks Worth $10 Billion In IPO

Uber is making its initial public offering next month and plans to sell stocks worth $10 billion as per reports. If that happens, it will be on top of the list of largest tech IPOs ever. The company had previously targeted to make investments close to $120 billion, but as of now, Uber is seeking a valuation close to $100 which is a step down after its rival Lyft performed badly in its IPO last month. A private market for fundraising valued the ride-hailing company at $76 billion.

Uber is a global company with a presence in more than 70 countries all over the world. Apart from providing rides to its users, the company has diversified into various other business like food delivery, freight hauling, bike rentals, etc. But Uber is also involved in a lot of controversies including claims of sexual harassment, bribery charges, data breach and use of illicit software and much more.

Uber had submitted its document secretly for the IPO in early December and the company CEO, Dara Khosrowshahi had said at that time that Uber would become a public company by the latter half of 2019. But as Lyft another ride-hailing company made its IPO in April, Uber has hastened the process. In order to make its IPO a big success, Uber is doing an investor roadshow this month end and also register at the US Securities and Exchange Commission this week so that they can be listed on the New York Stock Exchange by the start of next month.

The investor roadshow will be crucial for Uber as the CEO Dara Khosrowshahi will have to convince the investors that the company is worth investing and has moved on from the previous scandals. He should show that the business and cultural practices have become better after the scandals that rocked the company.

Uber would do well to learn from the mistakes that Lyft did. Lyft had made a valuation of $24 billion for the IPO offering but could manage to get only $2.34 billion. Moreover, the stocks are also not doing that well after it got listed in Nasdaq. The price of a Lyft share at the start of the IPO was $72 but is currently at $67.44.

Though Uber and Lyft offer the same service, both companies have different aspects. Uber can attract investors due to its global presence, through its diverse business and also as a stable company.

About the Author /


Pearl Knight is an award winning news writer. Her articles appeared on home page of some of the foremost publications. She has worked as a freelance writer for almost a decade. She recently joined FinanceNews.Global as a senior news editor. She generally writes about world's economy, business and finance related news stories.

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