Strong demand for Uber IPO may set the price at top of range

The Uber Technologies Inc. application is displayed in the App Store on an Apple Inc. iPhone in an arranged photograph taken in Arlington, Virginia, U.S. on Monday, April 29, 2019. Photographer: Andrew Harrer/Bloomberg

Uber Technologies Inc. has enough investor demand to price its initial public offering at the top end of its price range, people familiar with the matter said.

With more than 48 hours to go before the ride-hailing giant’s IPO is expected to price, investors have put in orders for at least three times the amount of stock on offer, the people said, asking not to be identified as the details aren’t public. Still, Uber is expected to price the sale within its existing range as it is keen to ensure strong aftermarket trading for the stock, they said.

Uber’s share sale, which could raise as much as $9 billion, is likely to be the largest this year and one of the 10 biggest U.S. listings ever, according to data compiled by Bloomberg. The San Francisco-based company, which is due to price its shares Thursday, hasn’t made a final decision on the price at which they’ll be sold, the people said.

The market environment could also impact the final price, after US equities tumbled the most since January on Tuesday.

The performance of rival Lyft Inc. is weighing on the mind of Uber executives as they market their IPO, the people said. That stock soared on its April debut after the original price range was boosted, but is now trading about 16 percent below its IPO price of $72 per share.

A representative for Uber declined to comment.

Uber Chief Executive Officer Dara Khosrowshahi and other executives have been meeting investors in cities including London, Boston and San Francisco over the past 10 days.

The world’s biggest ride-hailing company is offering 180 million shares for $44 and $50. At the top of that range, the listing would value Uber at almost $84 billion, based on the number of shares outstanding after the offering as detailed in the filing.

Also read:

Uber continues to spar with local officials world over ahead of IPO

Uber sets IPO terms, seeks to raise $10.3b at $91.5b valuation

Bloomberg

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.