Published: Mon, April 29, 2019
Money | By Ethel Goodwin

Uber Aims for $84 Billion Valuation in Year's Largest IPO

Uber Aims for $84 Billion Valuation in Year's Largest IPO

At the top of the range, the listing would value Uber at nearly $84 billion based on the number of shares outstanding after the offering, as detailed in the filing. On a fully diluted basis, including the addition of stock options, restricted shares or other stakes not included in the outstanding total, the valuation could top US$91.5 billion.

Uber also said PayPal had agreed to purchase $500 million of stock in a private placement at the price the IPO eventually settles at. The investment is part of a deal to extend the payment company's partnership with Uber.

As Salon reports, the strike may take different shapes in different cities, but we know from the group Rideshare Drivers United LA, the plan is to turn off both the Uber and Lyft apps all day on May 8 and picket at LAX. The company also recently launched Uber Freight, which creates an on-demand marketplace for shippers and carriers.

Uber plans to raise more than $10.3 billion in its initial public offering, potentially giving it a market capitalisation of $90 billion (R1.3 trillion). As of the end of 2018, only 2% of people in the 63 countries where Uber operates used its services, Uber said.

That amount is below the $120bn that investment bankers told Uber a year ago that it could fetch, but closer to the $76bn it obtained via its last private fundraising round, in 2018.

Uber is the latest, and will be the largest of the so-called "unicorns", or venture-backed startups worth at least $1 billion, to look to Wall Street listings to expand their capital base. Shares of Lyft Inc., which made its market debut in March at a $20.5 billion valuation, have since dropped 22 percent to well below their IPO price.

Uber's moderation of valuation expectations reflects the poor stock performance of its smaller rival Lyft Inc following its IPO last month.

Uber pulled back on its ambitious valuation target Friday, while still pricing its share offering in a range that would make it one of the largest tech market debuts in recent years.

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