Uber is undoubtedly one of the biggest ridesharing companies in the world right now that provides its services globally. It has been involved in quite a few controversies as well, of late. It came as a surprise for many when Uber declared that it was ready for an Initial Public Offering or IPO. Investors and analysts did the calculations and set Uber’s net worth between $80 billion and $90 billion. Their initial stock price in the IPO will lie between $44 and $50, they revealed.
Last year, a multitude of bankers set the valuation for Uber at $120 billion which was closer to the $76 billion it was successful in getting from a fundraiser that took place. However, the latest numbers are lower than the expected values and the poor performance of Lyft, a company of a similar ridesharing niche but a smaller organization may have been instrumental in the downgrading of Uber. Lyft closed at 22 % below the IPO price that it launched itself at on Thursday and skepticism started flaring.
Once Uber launches its IPO price at $44 to $50, it is expected to raise capital between $8 billion to $9 billion. Considering the amount, this will rank as one of the highest IPO since the time Alibaba went through a similar process. Some insiders of Uber are also expected to sell their shares at the IPO, taking the value up to $10 billion.
On Friday, Uber will reveal the sale of its last stock which will mark the end of its status as a private company and become a public one. Uber has earmarked Monday as the day it makes it’s an entry in the New York stock exchange and has organized a roadshow for the particular event. Top executives of Uber are slated to attend the event in Washington.