Uber files for the most-hyped IPO of the year

Jeannie Matthews
April 12, 2019

Investment bankers previously told Uber it could be worth as much as $120 billion.

Uber Technologies Inc's initial public offering filing on Thursday contains data that will be key to selling itself to investors.

The company is seeking a valuation of between $90-$100bn, influenced by the stock performance of smaller rival Lyft Inc following its IPO last month, the sources said. That will come before executives head out on a so-called road show created to drum up interest in the IPO among institutional investors who will be given the first opportunity to buy the stock before it begins trading on the New York Stock Exchange next month. That's down from a loss of $2.6 billion in 2017. The company generated net income of $997 million in 2018 on revenue of $11.3 billion, though operating losses totaled $3.03 billion.

Since its launch in 2009, it has aimed for global dominance of the ride-hailing industry through a cash-burning strategy of investor-subsidised fares and expanded its business in recent years to include food delivery, self-driving vehicles and alternatives to auto transport such as bikes and scooters. However, the shares have dropped over 16 percent since then, and now with Uber joining the fray, demand for Lyft stock may take a hit. The filing did not specify the size of Uber's IPO, but multiple reports suggested the company would seek a valuation of $100 billion or more.

Uber continues to be heavily loss-making despite its significant growth and expansion into new businesses, the taxi app has revealed as it filed to go public in NY.

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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.

In addition to answering questions about the company's finances, Uber CEO Khosrowshahi will be tasked with convincing investors that he has successfully changed the culture and business practices after a series of embarrassing scandals over the last two years.

Uber said its market share fell in most regions a year ago, although the rate of decline has slowed.

But it suspended testing when one of its self-driving vehicles struck and killed a pedestrian in Arizona a year ago.

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