Daily Management Review

Post Q1 Loss, Uber Reveals Its IPO Terms


04/27/2019


Uber updates its public filing for valuation expectations in the wake of Lyft’s poor performance post IPO.



On Friday, April 26, 2019, the Uber Technologies Inc revealed its terms for IPO and informed the investors that the company will seek to sell out nearly “$10.35 billion in stock at a valuation of up to $91.5 billion”. Revealing, further, the company also stated that PayPal has consented to buy “$500 million” stock in “a private placement at the price the IPO eventually settles at”.
 
One of Uber’s regulatory filing read that a “target price range” for IPO was at “$44-$50 per share”. As a result, the company will be selling out shares worth “180 million” in the offering while an additional “27 million” is to be sold by the present investors.
 
On the other hand, the filing also confirmed that the company has met with a loss of “around $1 billion and revenues of roughly $3 billion” in the Q1 of 2019. The updated version of the public filing syncs with the company’s preparation to start the roadshow for the investors, in the coming ten days, wherein the management will pitch Uber to the “public market investors”.
 
Investors will throw their questions at Uber, while the company may have to answer the expected time frame for profit returns, besides revealing about its plant of deal with the transition into “autonomous vehicles”, while it may also need to clarify it the company is equipped to “support higher driver costs from minimum wage rules”.
 
While, Reuters added:
“The valuation that Uber is seeking in its IPO is less than the $120 billion that investment bankers told Uber last year it could fetch, and closer to the $76 billion valuation it attained in its last private fundraising round last year”.
 
The medications effected at Uber in its valuation expectations is a reflection of Lyft’s “poor stock performance”, after it came out with its IPO last month. Lyft is a smaller rival of Uber.
 
 
References:
reuters.com







Science & Technology

Porsche, Boeing set to develop flying electric car

Samsung to invest $ 11 billion in new generation displays

US is betting on Nokia and Ericsson to replace Huawei

UPS becomes first to receive full regulatory approval for UAV shipping in USA

NASA orders Lockheed Martin to build spacecraft to fly to the Moon

Hyundai to create joint venture for unmanned vehicles

Bain & Company: E-wallets and cheaper transactions are new payment trends

Is UAV drone industry falling into decay?

UK Scotland Yard employs AI to deal with frauds

US sets to fight robocalls outbreak

World Politics

World & Politics

France: We will take measures to protect our military in Syria

Paralyzed Hong Kong: Protests don't fade

Johnson unveils Brexit compromise deal considering Irish issue

African swine fever at Europe’s borders: time for an embargo?

Saudi Crown Prince Says Khashoggi’s Murder Happened Under His Watch

Will Merkel restore her "Climate Chancellor" image?

Venezuelan opposition to receive $ 52 mln from USA

US And Saudi Threatened By Iranian Commanders In Case Of An Attack On Tehran