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Uber shares fall to record low as the stock lock-up expires

(Reuters) – Uber Technologies Inc. UBER.(N) fell as much as 9% to an all-time low on Wednesday after the close of the equity shares held by early investors became available for sale after the expiry of a period of six months, the limitation related to the route from company’s initial public offering.

FILE PHOTO: the Uber logo is displayed on a mobile phone in London, england, on September 14, 2018. (REUTERS photo/Hannah Mckay

Uber made the market and is available at $45 per share in May and has since lost more than 40% of the value of the loss-making company has struggled to retain the confidence of investors.

A lot of the Uber is nearly 1.68 billion outstanding shares were under lock-up. At the time of the IPO filing, Uber said that about 76% of the voting shares are held by insiders, venture capitalists, and other investors are under the limit.

“We have some of the sell-off in the last couple of days has been attributed to the fear of additional liquidity in the market and, as a result of the lock-up expiration today, and people were trying to get ahead of that,” said Matt Novak, a managing partner at Blue Capital, which is an Uber investor.

However, not all of the early investors in the market, it is possible to book a gain as they would have had to have bought shares above the current share price of $25.58.

SoftBank Group Corp (9984.(T), which has billions of dollars are invested into Uber its largest investor in 2017, bought preferred shares at $48.77 per share of the common shares at $32.97 per unit from the existing shareholders, including co-founder Theo Kalanick.

The Japanese company, which took a beating on its investment in WeWork, which earlier on Wednesday reported its first quarterly loss in 14 years, have been injured due to an $8.9 billion hit on the giant’s Vision Fund.

The journey from a company is also a Benchmark Capital, Saudi Arabia’s Public investment fund, and the letters of the Alphabet and Goldman Sachs, the top investment. None of the investors could be reached for comment.

Uber was the largest of a group of Silicon Valley start-ups that are in the public right of way, this year, set against the backdrop of a global equity market selloff, fueled by the trade war between the United States and China. The company’s latest quarterly report, it was also a disappointing year, piling more pressure on the depleted stocks.

It is placed in a wider third-quarter loss, as they will have to spend more than competitors on discounts to lure new customers, by investing heavily in the loss-making new ventures.

On the drive from services in more than 700 cities worldwide, Uber has diversified into the long-haul trucking, food-supply, and the development of self-driving cars, and the provision of banking services to its drivers.

However, the profit has been elusive.

The “Lock-up” side, you will be in the new world, and where investors need to have clear paths to profitability and the losses, regardless of whether the direction should be accompanied by a marked acceleration, and the Uber absent for the time being,” Needham analysts wrote in a client note on Tuesday.

(This story adds dropped word in first paragraph)

Reporting by Supantha Mukherjee in Bengaluru

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