Today Uber priced its IPO at the bottom of its range at $45 per share. The company sold 180 million shares in the process for a raise of $8.1 billion. Toss in the 27 million shares that its underwriters may purchase, and the total sum rises to $9.3 billion.
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At its IPO price, Uber is worth and $82.4 billion fully-diluted.
The valuation for Uber is a let-down compared to early rumors that the firm could fetch a valuation of as much as $120 billion when approaching the public markets. Various factors contributed to the smaller price tag, including slowing growth at the tech firm, staunch losses, market uncertainty stemming from the China-U.S. trade dispute, and Lyft’s slipping share price following its own ride-hailing IPO.
But for Uber, the fact that it is now public matters a bit more than IPO pricing quibbles. The firm has a long path ahead of it to reach cash flow break-even, let alone GAAP profitability. So, having a fresh whack of capital in its accounts is both well and good for the San Francisco-based, Vision Fund-backed tech shop:
Uber’s fundraising history and various private prices.
Uber’s IPO comes after noisy protests aimed at what some drivers consider noisome practices by the company impacting their ability to earn over the years (potentially unfair fare price changes, for example). Whether those protests had any impact is hard to tell, but unlikely; technology capitalism isn’t in much of a moral mood, unwilling to stop doing business with despotic regimes, dystopian tech, and more.
Next up for Uber is its first day of trading, followed by earnings. Lyft did well in early trading, but has since dropped billions in value. A sharply unprofitable first quarter further dinged its shares.
More in the morning when Uber begins to trade, and we get a clearer image of what it is worth.
Editorial Update: This post has been updated following confirmation from Uber.