Analysts say the decision to list between $80bn-$90bn is partly influenced by the poor performance of rival Lyft
Insiders disappointed with the world’s largest ride-hailing company's failure to reach the $120bn they expectedMonitors display Uber Technologies signs in front of Morgan Stanley headquarters in the Times Square area of New York, the US, April 26 2019. Picture? MICHAEL NAGEL/BLOOMBERG
The lower valuation reflects the poor stock performance of smaller rival Lyft following its IPO last month. Lyft shares ended trading on Friday down 20.5% from the IPO price, amid investor scepticism over the company’s path to profitability. Reuters reported in April that the combined value of Uber shares sold in the IPO would be around $10bn. The Uber IPO would rank as the largest in the US since that of Chinese e-commerce giant Alibaba Group Holding in 2014.
Uber expects to price the IPO on May 9 and begin trading on the New York Stock Exchange the next day, people familiar with the matter have said. Underscoring the company’s ability to generate revenue but also the scale of its losses, in the filing Uber reported for the first quarter of 2019 a net loss attributable to the company of around $1bn on sales of roughly $3bn.
This agreement is similar to when Comcast’s NBC Universal invested $500m in Snapchat owner Snap Inc, around the time of the latter’s IPO in 2017.
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