FILE PHOTO: the Uber logo is displayed on a mobile phone in London, great Britain, September 14, 2018. REUTERS/Hannah Mckay
(Reuters) – Ride-hailing company Uber Technologies Inc. will unveil conditions for the initial public offering on Friday, telling investors to be valued at between $80 billion and $90 billion, according to people familiar with the matter.
The valuation sought is less than the $120 billion valuation that investment bankers told Uber last year, could pick up, and closer to the $76 billion valuation it reached in the latest private fundraising round last year.
Uber is the extent of valuation expectations reflects the poor stock performance of the smaller rival Lyft Inc. after the IPO last month. Lyft shares ended trading on Thursday down 22 percent from the IPO price amid investor skepticism about the road to profitability.
Uber will unveil on Friday an IPO in the price range of between $44 and $50 per share, on the basis of what it would raise between $8 billion and $9 billion, the sources said. The ten-day investor roadshow will kick off on Monday, setting the stage for Uber to debut on the New York Stock Exchange in the beginning of May.
In addition, some Uber insiders will also sell their own shares in the IPO, the sources added. Reuters reported earlier this month that Uber shares sold in the IPO could be worth around $10 billion.
Uber is also planning to reveal on Friday the last sale of shares if a private company, the sources said. The identity of the investor involved in the private placement could not immediately be learned.
The sources asked not to be identified because the matter is confidential. Uber declined to comment.
Uber is active in more than 70 countries. In addition to the ride, his company, including bike and scooter rental, cargo carrying, food delivery, and an expensive self-driving car division.
Reporting by Joshua Franklin in New York and Heather Somerville in San Francisco; Editing by Bill Rigby and Meredith Mazzilli