Uber files with SEC for its IPO

Apr 14, 2019, 00:08
Uber files with SEC for its IPO

Buzz over Uber planning to go public comes amid protests across the globe sparked by the company.

Reuters reported late Tuesday that rival Uber would seek to sell around $10 billion worth of stock in an IPO, and file the offering with regulators as soon as Thursday.

Uber's float will be the largest since Alibaba, the Chinese ecommerce conglomerate, listed on the Nasdaq exchange in 2014, raising a record $25 billion.

Largely seen as a behemoth in the ride-hailing space, Uber completed 14 million rides a day in 2018, driving customers 26 billion miles, according to the company's filing with the U.S. Securities and Exchange Commision.

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Uber Technologies Inc may face a cooler reception from investors than expected when it prices its initial public offering next month since smaller U.S. ride-hailing rival Lyft Inc's aggressive stock launch and subsequent fall.

On March 30, Uber's chief rival, Lyft, went public amid a flurry of investor euphoria- only to sink rapidly below its IPO price to a record low, as bearish sentiment engulfed the shares. Lyft's IPO had excited investors for months, especially after the company increased its IPO share price range.

Uber in 2018 had $11.3 billion revenue, up around 42 percent over 2017, but below the 106 percent growth the prior year.

But Uber's growth was slowed by a raft of scandals beginning in 2016 that ultimately led to the ouster of its CEO, Travis Kalanick. At the end of 2018, Uber Eats, its most talked-about business, had gross bookings of $2.6 billion. Drivers will be able to use the bonuses to purchase Uber stock at its IPO price.

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After dropping off passengers at a Broadway play, Johan Nijman, a for-hire driver who runs his own service and also drives for Uber on the side, drives through the West Side of Manhattan on Wednesday evening, August 8, 2018 in New York City.

Uber is expected to fetch up to $10bn (£7.6bn) in the listing, which could reportedly occur in May and value the company at up to $120bn.

"I'm sure that the Lyft debut is going to affect both Uber and Pinterest", Hamilton added. Uber declined to comment for the report which cited unnamed people familiar with the matter.

Travis Kalanick, the former CEO who resigned in 2017 under pressure from the board, is one of Uber's largest shareholders, owning almost 9 per cent of the ride-hailing company's stock. "These changes will make rates comparable to where they were in September, while giving drivers more control over how they earn by allowing them to build a model that fits their schedule best", an Uber spokesperson told The Daily Caller News Foundation in response to an inquiry about the Los Angeles strike. Lyft was the first in a string of technology IPOs expected this year, including food delivery service Postmates and smart exercise bike Peleton.

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