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Uber eyes valuation topping $100 bn in IPO: sources
NEW YORK, Oct 17, 2018 (BSS/AFP) – Uber is eyeing a valuation above $100
billion for its much-anticipated share offering due in 2019, which would be
the biggest-ever in the tech sector, sources familiar with the plan said
Tuesday.
The sources told AFP the global ridesharing giant is considering speeding
up its plans for an initial public offering (IPO) to the first half of 2019,
rather than the second half of the year.
Uber, which operates in over 60 countries, is already the largest of the
venture-backed “unicorns” valued at more than $1 billion, which until
recently was considered rare without tapping stock markets.
Its most recent investment — a $500 million injection from Japanese auto
giant Toyota — was made at a reported valuation of $72 billion.
Earlier Tuesday, the Wall Street Journal reported that bankers were
proposing a valuation as high as $120 billion for Uber, which has been a
disruptive force in many cities where regulators and taxi operators have
challenged its business model.
Uber offered no comment on the IPO plans.
Sources told AFP the timing of the IPO will depend on market conditions
and that Uber was in talks with Goldman Sachs and Morgan Stanley to be lead
underwriters. The two firms declined comment.
Uber is due to make a market debut by the end of 2019 as part of an
investment deal with Japan’s SoftBank, which has a stake of some 15 percent.
– Heated race –
The ridesharing group last year hired a new chief executive, Dara
Khosrowshahi, who has vowed to fix the company’s work culture and business
practices after a series of missteps and scandals over executive misconduct,
a toxic work atmosphere and potentially unethical competitive practices.
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Under Khosrowshahi, Uber has moved to boost transparency and become more
accountable. Last month, it settle an investigation into a 2016 data breach
with a payment of $148 million, and earlier this year reached a settled with
former Google car unit Waymo over allegedly stolen trade secrets.
Uber reported a loss of $891 million in the second quarter as revenues
jumped 63 percent to $2.8 billion, with bookings hitting $12 billion.
As it expands its ridesharing services, Uber is also seeking to become a
major player in autonomous cars, and has agreed to buy and adapt vehicles
from Volvo to begin operating self-driving taxis.
Uber briefly suspended tests of self-driving cars in March following a
fatal accident in Arizona. It resumed testing in Pennsylvania in July, but
with a driver behind the wheel at all times, the company said.
If its valuation tops $100 billion, Uber would be worth more than the
combined value of the three big automakers General Motors, Ford and Fiat
Chrysler Automobiles.
Separately, Uber rival Lyft had selected JPMorgan Chase as the lead
underwriter, a source told AFP.
The Wall Street Journal first reported JPMorgan had been chosen along with
Credit Suisse and Jefferies Group for its IPO next year, which could value
the company at some $15 billion.
The two San Francisco firms have been in a heated race in the US market.
Lyft has discussed international plans but so far has expanded only to a
handful of cities in Canada.
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