(Reuters) – Uber Technologies Inc. has decided to sell around $ 10 billion worth of stock in its initial public offering, and will make public the offer of the offer on Thursday, people familiar with the matter said on Tuesday.
FILE PHOTO: The Uber Hub is seen in Redondo Beach, California, US, March 25, 201
An IPO of this size would make Uber one of the greatest IPOs of all time, and the largest ever since the Chinese e-commerce giant Alibaba Group Holding Ltd in 2014.
Uber is seeking a valuation of between $ 90 billion and $ 100 billion, influenced by the weak performance of its smaller rival Lyft Inc.'s shares following its IPO late last month , the sources said. Investment bankers previously told Uber that it would be worth as much as $ 120 billion.
Uber most recently was valued at $ 76 billion in the private fundraising market.
Most of the shares sold would be issued by the company, while a smaller portion would be owned by Uber investors cashing out, one of the sources said.
Uber plans to make its IPO registration with the U.S. The Securities and Exchange Commission will be publicly available on Thursday and will kick off its investment roadshow during the week of April 29, putting it on track to price its IPO and start trading on the New York Stock Exchange in early May, the sources said.
The sources have warned that the plans are still subject to change and market conditions, and that the issue is not confidential.
A representative for Uber declined to comment.
Lyft's IPO was priced at the top end of its upwardly revised range last month, assigning it a valuation of more than $ 24 billion in a bid that raised $ 2.34 billion. But the stock has traded poorly since debuting on Nasdaq on March 29, as concerns the startup's path to profitability have become more prominent. The shares ended trading on Tuesday at $ 67.44, well below their $ 72 IPO price.
In moderating its valuation expectations, Uber is showing realism that is increasingly being adopted by Silicon Valley unicorns, as stock market investors push back against some of the lofty price tags sought.
On Monday, Pinterest Inc set a price range for its IPO, which values it below the $ 12 billion at which the online image-search company sourced its last private fundraising in 2017.
Uber operates in more than 70 countries. In addition to ride-hailing, its business includes bike and scooter rentals, freight hauling, food delivery, and an expensive self-driving car division.
During the IPO roadshow, Uber's chief executive, Dara Khosrowshahi, will be tasked with convincing investors that he has successfully changed the company's culture and business practices after a series of embarrassing scandals over the past two years.
Those have included sexual harassment allegations, a massive data breach that has been concealed from regulators, the use of illicit software to escape authorities and allegations of corrupting overseas.
The last year had revenue of $ 11.3 billion, while gross bookings from rides was $ 50 billion. But the company lost $ 3.3 billion, excluding gains from the sale of its overseas business units in Russia and Southeast Asia.
Reporting by Joshua Franklin and Carl O'Donnell in New York; Additional reporting by Liana B. Baker in New York; Editing by Leslie Adler