The Strategist

Uber plans to raise $ 10 billion within IPO

04/10/2019 - 13:18

American Uber Technologies Inc., which provides taxi services and food delivery, plans to raise about $ 10 billion in the initial placement of its shares, while official IPO registration data will be published on Thursday, Bloomberg reports, citing sources.

The estimated size will make this IPO one of the largest placements of technology companies in history, as well as the most significant one after the IPO of the Chinese Alibaba Group in 2014.

According to the results of the placement, Uber could be valued at $ 90-100 billion, while earlier analysts assumed that the company's market value could reach $ 120 billion. In the last round of raising funds, Uber was valued at $ 76 billion.

Uber intends to hold a road show at the end of April, and the placement will take place on the New York Stock Exchange (NYSE) in early May, sources said.

During the road show, Uber’s CEO Dara Khosrowshahi will have to convince investors that he has managed to change the company's culture after a series of scandals that have occurred in the past two years. They were associated, for example, with a complaint of an employee of sexual harassment at work, an accident with a Uber drone, which was the first accident of an unmanned vehicle when a man died. Also, there were millions of users data leaks, which was hidden from regulators, as well as use of illegal software to spy on competitors, accusations of giving bribes abroad, etc.

Uber is an international technology company that develops mobile services for calling cars with a personal driver. The company provides services in more than 600 cities in 65 countries.