Uber is expected to set its share price at $45

Andrew Cummings
May 11, 2019

Uber sold 180 million shares for US$45 each Thursday, after marketing them for US$44 to US$50 apiece.

Uber indicated its first shares were expected to trade up slightly, in the region of $45.50 to $46.50, when trading opens.

After all the hoopla surrounding Uber Technologies Inc.'s $8.1 billion initial public offering, investors in the ride-hailing company must have been less than thrilled as its shares debuted with a resounding thud.

The listing gives Uber another roughly $8 billion to fund investment in its expansion, adding to the almost $25 billion raised in 23 private funding rounds, according to Crunchbase.

Uber is going public with its IPO today, meaning that for the first time the public can invest in the ride-sharing app.

Uber has prioritized selecting shareholders - particularly institutional investors - that it thinks will hold on to the stock for a long time, according to a person familiar with the matter.

Uber Technologies Inc. fell in its trading debut, sending the ride-hailing giant's market value below its last private funding round.

Still, it's a considerable climb down from earlier projections: previous year, bankers jockeying to lead the offering told Uber it could be valued at as much as $120 billion in an IPO. The float is likely to be the biggest public listing in the USA this year and one of the biggest of all time.

It was hardly the "pop" that investors may have hoped for after analysts suggested Uber took a conservative approach and priced its IPO on the lower end of its marketed range. After submitting its confidential filing in December, Uber - along with Lyft and a host of other hopefuls - was left sitting on the sidelines while USA stocks enjoyed the best start to a year in at least a decade.

Khosrowshahi told The Associated Press on Friday it was a tough week to go public, but the company got it done.

Like numerous IPO class of 2019, including Lyft and Pinterest Inc., Uber is unprofitable. Morgan Stanley, Goldman Sachs Group Inc. and Bank of America Corp. led the listing.

Uber lost US$3.03 billion in 2018 from operations, and reported a net loss attributable to the company for the first quarter of 2019 of around US$1 billion on revenues of roughly US$3 billion.

Other reports by iNewsToday