NEW YORK (Reuters) – Uber Technologies Inc. CEO Dara Khosrowshahi and his management team took the ride-hailing giant’s investor roadshow for the ipo in New York on Tuesday, as demand for the shares, already surpassing the supply.
An investor walks out of the Uber IPO roadshow with documents in hand at a hotel in Manhattan, New York, New York, USA, 30 April 2019. REUTERS/Jeenah Moon
At a lunch presentation at the Mandarin Oriental Hotel overlooking New York’s Central Park, where fusilli pasta and BLT club wraps were served to the investors, Khosrowshahi said Uber is the future, not as a ride-hailing company, but as a broad platform for the engineering design of logistics and transport.
“Dara was very impressive, he does a good job voicing the story,” said one of the investors who attended, who for anonymity because the presentation was closed to the media.
Uber is set to the price of $10 billion IPO on May 9, looking for a valuation of $90 billion. Investors attending the roadshow said Uber, the IPO book was quickly oversubscribing, how to create a pop in the shares of the company on the first day of the trade more likely. Uber declined to comment on how much demand there is for the IPO.
Uber executives arrived in New York after their roadshow in London on Monday. In a ballroom at Claridge’s, the five-star hotel in London, the wealthy Mayfair district of london, more than 100 investors listened to Khosrowshahi and Chief Financial Officer Nelson Chai to talk about the plans to expand their food delivery business and venture into other new business areas, such as shopping.
In New York, Uber executives fielded questions, ranging from autonomous driving to plans to introduce in the supermarket business.
Uber has been warned in the IPO filing that it may never make a profit, and is faced with obstacles, such as the increasing regulations and the local minimum wages, which are an obstacle to profitability.
Uber follows smaller rival Lyft Inc., which went public with a $24 billion valuation. Lyft, the shares of more than 17 percent since the IPO on March 28, amid investor scepticism about the road to profitability.
Khosrowshahi is also tasked with convincing investors that he has successfully amended the Uber culture and business practices after a series of painful scandals of the past two years.
That have included sexual harassment allegations, a massive data breach that was hidden from regulators, the use of illegal software to evade the authorities and allegations of bribery abroad. Khosrowshahi joined Uber in 2017, replacing company co-founder Theo Kalanick, who was ousted as CEO.
Uber, the IPO is led by Morgan Stanley, Goldman Sachs Group Inc and Bank of America Corp.
Reporting by Joshua Franklin and Carl O’donnell in New York; writing by Greg Roumeliotis in New York; Editing by Phil Berlowitz