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Uber Plans IPO Worth $10 Billion In Stocks For The Public: Reuters

Uber Plans IPO Worth $10 Billion In Stocks For The Public: Reuters
In its first ever initial public offering (IPO), ride hailing company Uber would be putting up about $10 billion worth of stock for sale and is set to get its offer publicly registered this week, reported news agency Reuters citing sources with information about the matter.
Uber’s IPO would become the biggest technology IPOs of all time is it manages to raise that amount and would be the largest IPO since the IPO launch in 2014 of Chinese e-commerce giant Alibaba Group Holding Ltd.
A valuation of between $90 billion and $100 billion is being sought by Uber, partially because of the poor performance of its smaller US rival Lyft’s shares after it had launched its IPO late last month, according to the sources quoted in the report. On earlier occasions, a valuation of as much as $120 billion was pegged for the company by analysts. In the latest private fundraising market, the company was valued at $76 billion.
The report also stated that the major portion of the shares put up for sale would be issued by Uber itself while a small portion would be issued by those Uber investors who want to cash out of the company.
Uber intends to make public its IPO registration with the U.S. Securities and Exchange Commission later this week and will start its road show for the IPO during the week of April 29. According to sources, that time frame would allow the company to start trading at the New York Stock Exchange in early May after pricing its IPO.
There were no comments made by Uber on the story.
The price of Lyft’s IPO was placed at the upper range of its upwardly revised range last month which gave the company a valuation of more than $24 billion in the offering which helped the company to raise $2.34 billion. But debuting since March 29, the stock has preformed poorly after questions were raised about the manner in which the company plans to achieve profitability. The shares ended trading on Tuesday at $67.44, well below their $72 IPO price.
A realism that is being increasingly adopted by Silicon Valley unicorns is being adopted by Uber in its moderating its valuation expectations. This also reflects the realisation among tech stocks about the market is not willing to accept the lofty price tags that are being sought by some of the companies.
Uber has its operations in over 70 countries. Apart from ride hailing business, Uber also operates fleets of bike and scooter for rentals, is engaged in freight hauling and food delivery, and has developed a self-driving car division which is reportedly burning up cash at a fast rate.
Reports said that a realism that is being increasingly adopted by Silicon Valley unicorns would try and convince investors that the culture and business practices of the company has changed following the revelation of a number of scandals in the last two years in the company which has tarnished the image of the company and raised questions about its polices and corporate culture.

Christopher J. Mitchell

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