Uber IPO aims to raise $10bn

10 Apr 2019

Uber app with car. Image: itchaz.gmail.com/Depositphotos

IPO activity by tech unicorns continues to ratchet up.

Ride-sharing company Uber has become the latest tech unicorn to enter the initial public offering (IPO) fray and is expected to reveal plans to raise $10bn in what could be one of the largest tech IPOs ever.

The company, which employs around 400 people in Limerick, has become the latest tech giant to announce intentions to go public. Earlier this week Pinterest revealed plans to IPO and other unicorns such as productivity app player Slack are also planning to go public.

CEO Dara Khosrowshahi has done a remarkable job of steadying the ship at Uber after a number of years of scandals and controversies that dogged the company.

By seeking to sell $10bn worth of stock, the Uber IPO is expected to be among the top 10 biggest IPOs in the US, and the largest since Chinese e-commerce giant Alibaba went public in 2014.

Going public

Uber is seeking a valuation of between $90bn and $100bn, which is down from the $120bn it was originally valued at by investment banks, possibly influenced by Lyft’s experiences. Uber was valued at $76bn recently in the private fundraising market.

While unicorn sentiment to IPOs in 2019 is at an all-time high, it is not all plain sailing. Lyft has had a troubled public listing, with the stock performing poorly since its debut on the Nasdaq on 29 March and concerns about its path to profitability.

Either way, by filing for an IPO, potential investors will get to examine Uber’s finances in greater detail than before, and if anything the experiences of rival Lyft will form an important reference point for investors.

Uber is expected to kick off a roadshow for potential investors, with a view to going public in May.

The company is tipped to file for its public listing with the Security and Exchanges Commission today (10 April).

Uber app with car. Image: itchaz.gmail.com/Depositphotos

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years