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- Uber‘s highly anticipated initial public offering is imminent.
- Shares are set to begin trading on the New York Stock Exchange on Friday in one of the largest US-listed IPOs on record.
- Uber priced at $45 a share on Thursday evening, giving it a valuation of $75.5 billion.
- Banks were seeking a valuation of $120 billion at the start of the IPO process.
- Visit Markets Insider’s homepage for more stories.
Uber is set to begin trading on the New York Stock Exchange on Friday in one of the largest initial public offerings in US history.
The ride-hailing giant priced shares at $45 apiece, giving it a valuation of $75.5 billion, far below the $120 billion that was floated in October. Uber is expected to raise $8.1 billion through its IPO process, and another $500 million through a PayPal private placement.
Still, the San Francisco-based company’s valuation ranks amid the largest US debuts on record, trailing only Alibaba’s $169 billion debut in September 2014 and Facebook’s $81 billion debut in May 2012, according to a Dealogic analysis.
The lowered pricing came in the face of rival Lyft’s stunning decline on the public market since debuting in late March. Lyft shares plunged to a record low earlier this week after its first quarterly report as a public company fell flat with investors.
On the heels of Uber’s debut came nationwide strikes by both Uber and Lyft drivers, attempting to raise awareness about low pay and working conditions. The strikes highlighted the regulatory risk both ride-hailing companies face in various markets in the US and, for Uber, around the world.
Uber’s IPO also comes at a delicate moment for the stock market, but remains near record highs has seen volatility pick up amid an escalation in trade tensions between the US and China.
A volatile market isn’t ideal for IPOs as it shakes investor confidence and creates an uncertain environment during an important phase for newly minted shares.
Some initial public offerings were delayed earlier this year due to the partial US government shutdown and a historically dismal fourth quarter.
Now read more Uber coverage from Markets Insider and Business Insider:
Morgan Stanley, Goldman Sachs, and all 27 other banks working on Uber’s mega-IPO
Uber may owe another $128 million to Google for awards related to Uber vs. Waymo
Uber and Lyft drivers explain why they are striking
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Source: Business Insider – rungarino@businessinsider.com (Rebecca Ungarino)