Uber, the ride-hailing app that is eyeing an initial public offering in May, is looking to raise $10 billion via the offering.
The Financial Times, citing a person familiar with the matter, reported Uber is expected to make its IPO registration documents public Thursday (April 11) and launch a roadshow on April 29. If Uber files for a $10 billion IPO, it will be the largest this year and could surpass Facebook, which holds the current record for the biggest IPO of a U.S. technology company. When Facebook went public back in 2012 it raised $16 billion. Alibaba, the Chinese eCommerce giant which ranks as the largest IPO around the world, raised $25 billion in 2014.
The IPO of Uber has been anticipated for a long time, with investors awaiting the opportunity to get in on a company that has transformed the way we travel. Last month Lyft, the ride-hailing rival, went public. Since its debut on the stock market, shares have traded below its IPO price. Lyft raised more than $2 billion with its IPO. Pinterest, the image search company, is gearing up to tap the public markets this spring.
While Uber was most recently valued at $76 billion, bankers and investors told the paper it could have a valuation of more than $100 billion when it goes public. Morgan Stanley and Goldman Sachs are leading the IPO. Investors are expected to glean a lot of details about the financial performance of Uber via the filing with the Securities and Exchange Commission. It will lay out where it stands from a competitive perspective, how much money it makes and how much it loses as well as full disclosures on all the legal and regulatory issues the ride-hailing company has contended with. The Financial Times noted that for years Uber has only provided select details about its finances to investors. Uber in 2018 saw revenue increase 43 percent to $11.3 billion and narrowing losses of $3.3 billion. In 2017 it lost $4.5 billion, noted The Financial Times.