Plus   Neg

Uber Technologies Prices IPO At $45 A Share

Ride-hailing company Uber Technologies Inc. (UBER) Thursday announced it has priced its highly anticipated initial public offering at $45 per share, which will make it the biggest IPO for a U.S. company since Facebook.

Uber said it will sell 180 million common shares at a price of $45.00 per share, which is at the lower end of its initial range of about $44 to $50 per share. The pricing will raise about $8.1 billion for the company and give a valuation of about $75 billion.

PayPal Inc. has agreed to buy $500 million of Uber's common stock in a private placement at Uber's IPO price.

Uber shares will start trading on the New York Stock Exchange under the symbol "UBER" on Friday, May 10. The company plans to use the net proceeds for general corporate purposes, including working capital, operating expenses, and capital expenditures.

For the three months ended March 31, 2019, Uber expects revenue to be between $3.0 billion and $3.1 billion compared to $2.6 billion reported last year. The company expects quarterly net loss between $1.0 billion and $1.1 billion, compared to net income of $3.7 billion in the prior year.

The company's IPO will become the biggest U.S. offering since Facebook raised $16 billion in 2012. Chinese e-commerce company Alibaba Group had raised about $25 billion in 2014, while Visa raised around $18 billion in 2008.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT