UBER GOING BIG. Uber Aims For $100 Billion Valuation. By Todd Horwitz, Bubba Trading

 

Uber Aims For $100 Billion Valuation 

Uber gave the first sign of how big its highly anticipated initial public offering might be, telling some investors that its stock sale might value it at up to $100 billion, people briefed on the matter said. The number, which is below a $120 billion valuation that had been floated by investment bankers, highlights the size of the ride-hailing colossus as it prepares to embark on its market debut, the biggest in recent years. Its shares are expected to begin trading on the public markets next month.

The revelation follows the I.P.O last month of Uber’s main North American competitor, Lyft, whose shares have since dropped more than 15 percent from their offering price. Another Silicon Valley darling, the digital pin board Pinterest, this week set pricing expectations for its own market debut below its last private fund-raising round.

Uber is expected to publish its public offering prospectus on Thursday, giving investors a closer look into its businesses. That document will not provide any information on the offering’s potential price, but the company recently disclosed its latest thinking about its own valuation to some investors.

In a notice to holders of some of its convertible bonds last week, Uber said that its stock could be valued at $48 to $55 a share, said the people briefed on the situation, who asked not to be identified because the details were confidential. That would translate into a valuation of about $90 billion to $100 billion for the company, factoring in the roughly $10 billion that it expects to raise.

Uber was last valued in the private markets at about $76 billion, or $48.77 a share, in a fundraising round in 2018 with Toyota Motor Corp. But the potential price range is below what investors had expected even in recent weeks. When Uber recently said it would acquire Middle Eastern rival Careem Networks FZ for $3.1 billion, it issued convertible shares at a price tag of about $55 each, and some investors had expected that to set a floor for the stock.

A consortium including SoftBank Group Corp. was in late-stage talks to invest $1 billion or more in Uber’s self-driving vehicle unit, people familiar with the matter said in March

Todd “Bubba” Horwitz

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Financial Markets and Political Commentary
 

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Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.