Uber intending selling stock of worth $10 billion in IPO – sources

Uber intending selling stock of worth $10 billion in IPO – sources

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Uber Technologies Inc is looking for selling stocks of worth around $10 billion in its initial public offering and will be registering the offering on Thursday, reported Reuters, citing people familiar with the matter.

Significant size of IPO will make the Uber’s IPO one of the biggest technology IPOs and largest since 2014 IPO of Chinese e-commerce giant Alibaba Group Holdings Ltd.

Uber is expecting to get a market valuation of between $90 billion and $100 billion as shares of smaller rival Lyft has been underperforming after an IPO in late last month and that will impact the IPO of Uber, the sources said.

Investment bankers have previously expecting the company of having a worth of about $120 billion, as they told Uber, while in most recent private fundraising market, Uber was valued at $76 billion.

At the IPO, Uber’s investors will also be selling shares of the company to cash out their investments besides most of the share would be issued by the company itself, one of the sources said.

Uber is intending to make its IPO registration publically available on Thursday, which the company has filed with the U.S. Securities and Exchange Commission, and to get most out of its IPO, will begin investor roadshow during the week of April 29. And it will be the early May when Uber is likely to be start trading on the New York Stock Exchange, the sources said.

Uber’s representative decline to comment on company’s IPO plans, while the sources cautioned that depending upon the market conditions, Uber’s can still change its strategy.

Last year, Uber reported a loss of $3.3 billion, which excludes funds received from the sales of its overseas business units in Southeast Asia and Russia, by generating revenue of $11.3 billion while making $50 billion worth of gross bookings from rides.

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She is the Managing Editor for in-depth discussions and analysis as well as breaking news at Markets Morning. She works closely with Editor-in-Chief Zac Berry on content and publishing initiatives for the site. Brianna Clemons has worked as a financial journalist and editor since 1997. She lives in Bucks County, PA, with her husband, four young children and one dog.

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