On Friday, the 26th of April 2019, Uber Technologies Inc., the most closely-watched Silicon Valley giant headquartered in San Francisco, said during its quarterly earnings that it would be orienting towards raising a valuation of as little as $91.5 billion in its Initial Public Offering scheduled to be taken place by the first week of May.
In point of fact, despite its loss-making efforts across the world, Uber’s IPO might mead the largest US public listing in years, while it would likely to test investors’ appetite for a growing, yet highly non-profitable business.
Over Friday’s (April 26th) quarterly earnings, the California-based ride hailing service provider said that they had been seeking less than $120 billion, which investment bankers told last year that Uber could fetch.
Never the less, it is highly unlikely that Uber Technologies would not be able to generate as little as $91.5 billion during its IPO, given its $76 billion valuation obtained over its last year’s private fundraising.
According to multiple analysts, Uber IPO had been on its way to post the largest public offering in Unites States, since e-commerce giant Alibaba Group Holding’s public offering back in 2014. Expressing an intensifying catch-22 among the economists over Uber’s profitability even at a long-term outlook, a head of Framlington Global Equities, Mark Hargraves wrote at a client note, “When it comes to Uber, we believe there are still questions over the current car-sharing model, the economics of which are not immediately or obviously attractive for sustainable, long-term investment”.