Uber Inc. has announced that it will sell about $10 billion worth of stock in its initial public offering (IPO). Reuters reported the news on Tuesday. An IPO of this size would make the ride-hailing giant one of the largest technology IPOs ever. It is the most extensive public offering since that of Chinese e-commerce giant Alibaba in 2014. As per sources, Uber is looking at an appraisal value between $90 billion-$100 billion. The notion is biased by the bad achievement of competitor Lyft’s shares in the wake of its IPO. The company intends to sell most of the shares, while some investors agreed to cash out may own a handful of stocks.
On the other hand, Uber aims to make its IPO filing with the US SEC (Securities and Exchange Commission). It will be publicly available in the upcoming week. Besides, the company will launch its investor roadshow in the last week of April. The push will put the ride-hailing giant on track to value its IPO. Thus the company may start dealing on the New York Stock Exchange in early May. But sources reveal the plans may change in the eleventh hour as per market conditions. Although, Uber priced $76 billion in the private fundraising market.
While Lyft and Uber work on the same platform, users hail a ride via a smartphone app. Though it may happen that both will peak feasible investors to various perspectives of their respective businesses. So Uber will show-off itself as an international business with different aspects such as flying cars and food delivery. Uber’s CEO, Dara Khosrowshahi, stated that it would be his responsibility to convince financiers that he has entirely transformed the company. He will mainly focus on massively changed customs and business practices after a series of disgracing scandals from the past two years. Whereas, Lyft, is a smaller company as compared to Uber. US and Canada are the prominent and only service sectors of the company. Recently, on Monday, Pinterest Inc. established a price range for its IPO which prices less than $12 billion.