Uber Technologies Inc is disrupting the Global taxi and transportation industry, and its vast market potential is becoming clearer by the day.
For now, the company is privately owned with ownership split between employees and venture capital investors. Although the company has a lot of money for expansion, it continues to accept private investment money.
However, as a company’s valuation gets bigger, the owners’ desire to cash out becomes stronger. For this reasons, investors and financial markets analysts have been expecting Uber to go public for several years now. Finally, the company seems to be rolling out a plan to go public before the end of the decade.
Uber CEO Dara Khosrowshahi has hinted that the company would issue IPO by next year. Therefore, if you have been thinking of investing in Uber, it is still impossible to buy its stock. The best thing you can do for now is to prepare as you wait for the stock to start trading. Below is a rundown of some things you should know about Uber as you wait to buy the stock.
Brief History of Uber
Uber Technologies Inc was founded in 2009 by Travis Kalanick and Garrett Camp. The Company encapsulates disruption. It changed everything the world knew about grabbing a ride.
The company made use of modern technology, which many people take for granted, to establish a brand and give consumers and producers a better experience. The company is currently valued at 70 billion, and it has raised over 10 billion dollars in capital since it was founded.
Although Travis Kalanick, the former CEO, tried to put off IPO as long as he could, the current CEO, Dara Khosrowshahi seems to be more receptive to the idea of going public.
Dara argues that by virtue of being on the spotlight, the company suffers all the disadvantages of being a public company but does not benefit from any advantages of being a public company.
Plans are underway for Uber initial public offering by next years. Dara Khosrowshahi has also indicated that Travis and the entire board now agree that the company has to go public. Uber is also in talks with Softbank for massive private investment.
In a nutshell, the future of Uber looks bright and investing in the company when it goes public next year could be a great idea.
Estimated Share Price
The share price of a stock is determined by the total value of a company divided by the issued number of shares.
Since there is currently no a public market for Uber shares, it is not possible to tell what the willing buyers will be willing to pay the willing sellers once the company goes public in a situation where buyers will be looking to buy low while sellers will be willing to sell high.
Analysts are making estimates in the range of $40 to $55, but of course, this could change by next year.
The Takeaway
Overall, it is apparent that after years of anticipation, Uber IPO is bound to happen before the end of next year.
For investors who would like to be part the company’s success story, it’s time to familiarize themselves with the company and get ready to invest.
