Uber Technologies Inc has set the terms of its initial public offering, with the ride-hailing giant expected to raise up to $9 billion and be valued up to $91.5 billion. The company filed an updated S-1 registration form with the U.S. Securities and Exchange Commission (SEC) saying it intends to price its IPO at between $44 and $50 per share.
San Francisco, Calif.-based Uber is offering 180 million shares of its common stock to the public. In addition, the company has granted underwriters of the offering an option to purchase an additional 27 million shares of common stock from selling stockholders to cover over-allotments. Uber’s existing investors including co-founders Garett Camp and Travis Kalanick, as well as Benchmark and SoftBank will also sell their own shares in the offering.
The valuation that Uber is seeking is lower than the $120 billion the company was told it could attain by investment bankers last year. It is, however, nearer to the $76 billion valuation the firm fetched in its last financing round in 2018. Analysts believe Uber lowered its valuation expectations because of the poor run that shares of rival Lyft Inc. (NASDAQ: LYFT) have had since debuting on the Nasdaq in March.
The shares will list on the New York Stock Exchange early next month under the ticker symbol “UBER.” Goldman Sachs, Bank of America, and Morgan Stanley are the lead underwriters for the IPO, which is the expected to be the largest since that of Alibaba Group Holding Ltd five years ago.
Uber has also disclosed that said PayPal, Inc (NASDAQ: PYPL) had agreed to buy $500 million of stock in a private placement at a price per share equal to the price the initial public offering eventually settles at. Both companies said they will “explore future commercial payment collaborations,” including the expansion of the taxi company’s digital wallet to allow customers to pay for rides as well as other things.
Uber begins its roadshow for investors in earnest on Monday, in which its top executives will drum up interest from investors. The executives are expected to respond to a number of questions during the roadshow, including when they hope to post a profit, how they plan to support higher driver costs, and how they will transition to self-driving vehicles.
Uber’s updated regulatory filing shows it reported a net loss of roughly $1 billion on revenues of around $3 billion in the first quarter of 2019.