Select Page

Don't Tread On My Site

Uber Said To Price IPO At Low End Of Range

Load WordPress Sites in as fast as 37ms!

Update: It’s official. According to WSJ, Uber has priced its IPO at $45, near the bottom of its $44-$50 range.

https://platform.twitter.com/widgets.js

 

*  *  *

In less than 24 hours, the same newspaper has reported that Uber has gone from leaning toward an IPO price in the middle of its range, to one that’s decidedly at the lower end – the latest sign that the ride-sharing company’s public debut has been impacted by the abysmal post-IPO performance of its smaller rival, Lyft, as well as the volatility that has rattled markets this week.

Uber

Per WSJ, Uber is now looking at a IPO price of $45 a share, near the bottom of its $44-$50 range. The company had already cut its valuation target twice. At this price, Uber would debut with a valuation of around $74 billion, which is below its last private valuation of $76 billion (meaning SoftBank’s ‘Vision Fund’, one of the company’s biggest backers, could actually be saddled with losses from the IPO).

The exact price hasn’t been finalized, and is expected to be released Thursday evening. WSJ’s sources insisted that Uber’s underwriters – a group led by Morgan Stanley – were simply taking a ‘conservative approach’ given the trading activity this week. But considering that the company’s private backers, not to mention company insiders and the banks themselves, have some pretty powerful financial incentives to sell at the highest possible price point, this seems questionable to us.

Even at $74 billion, Uber’s would still be the biggest IPO since Alibaba.

Perhaps too many buyers took a look at this chart.

https://platform.twitter.com/widgets.js


This post has been republished with permission from a publicly-available RSS feed found on Zero Hedge. The views expressed by the original author(s) do not necessarily reflect the opinions or views of The Libertarian Hub, its owners or administrators. Any images included in the original article belong to and are the sole responsibility of the original author/website. The Libertarian Hub makes no claims of ownership of any imported photos/images and shall not be held liable for any unintended copyright infringement. Submit a DCMA takedown request.

Read the original article.

About The Author

Tyler Durden

Zero Hedge's mission is to widen the scope of financial, economic and political information available to the professional investing public, to skeptically examine and, where necessary, attack the flaccid institution that financial journalism has become, to liberate oppressed knowledge, to provide analysis uninhibited by political constraint and to facilitate information's unending quest for freedom. Visit https://www.zerohedge.com

Leave a reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.