Uber to price blockbuster IPO on Friday amid gray market backdrop


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Uber to price blockbuster IPO on Friday amid gray market backdrop

On Thursday, the 9th of May 2019, the ride-hailing pioneer and one of the most closely watched Silicon Valley giant, Uber Technologies would price its IPO, which has been expected to be the most high-profile US public listing since Facebook Inc.’s seven years ago.

Nevertheless, Uber would likely to face steep challenge amid a turbulent market atmosphere, while its US rival, Lyft Inc.’s share price had been hovering near $52 per share, much lower than its IPO price, $72 per share, after the ride hailing company had reported a quarterly loss $1.1 billion.

Although Uber seemed to be keen to avert what had happened to Lyft Inc.’s stock, questions were raised whether the loss-making ride hailing giant could fulfill market anticipation. The world’s largest ride-hailing service provider, Uber Technologies, headquartered in California, had been targeting for a market valuation between $80.4 billion to $91.4 billion in its Initial Public Offering, which was as little as one-third shy of its initial expectation, as the company had expressed to hoard a valuation of around $120 billion on last December.

In light of a lot of price talks between Uber’s management and its advisor board, the company would be focusing somewhere between $44 to $50 per share, however, no final decision had yet been made, a source familiar with the discussions had revealed yesterday (May 8th).

Adding that Uber’s share price might have been a garrulous gamble, whose fate would largely depend on the market backdrop, founder of data firm, Safeworks, Brian Hamilton said, “Uber is basically Lyft 2.0. Good model, growing sales.

But, yet again, here comes California math once more. It is still losing a ton of money. If you buy, you are buying a bull market, not a company”.