Uber Sneaks Into the Market in IPO

Chris Lange

Uber Technologies Inc. (NYSE: UBER) snuck into the market Friday with its initial public offering (IPO). The company originally priced its IPO at $45 per share, although it actually entered the market well below at $42. This comes in below the lower end of the expected price range Uber gave earlier this week of $44 to $50, for its 180 million shares, with an overallotment option for an additional 27 million shares.

The underwriters for the offering are Morgan Stanley, Goldman Sachs, Merrill Lynch, Barclays, Citigroup, Allen, RBC Capital Markets, SunTrust Robinson Humphrey, Deutsche Bank, HSBC, SMBC, Mizuho Securities, Needham, Loop Capital Markets, Siebert Cisneros Shank, Academy Securities, BTIG, Canaccord Genuity, CastleOak Securities, Cowen, Evercore ISI, JMP Securities, Macquarie Capital, Mischler Financial Group, Oppenheimer, Raymond James, William Blair, Williams Capital and TPG Capital.

Uber revolutionized personal mobility with ridesharing, and it currently operates the largest ridesharing service in the world. Management is leveraging its platform to redefine the massive meal delivery and logistics industries.

In a previous filing, Uber described its finances as follows:

In 2018, Gross Bookings grew to $49.8 billion, up 45% from $34.4 billion in 2017. Over the same period, revenue reached $11.3 billion, up 42% from $7.9 billion in the prior year. Core Platform Adjusted Net Revenue was $9.9 billion in 2018, up 39% from $7.1 billion in 2017. Net income (loss) was $1.0 billion in 2018 and $(4.0) billion in 2017. Adjusted EBITDA was $(1.8) billion in 2018 and $(2.6) billion in 2017.

The company intends to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.

Shares of Uber were last seen down less than 1% at $44.65, with a range of $41.06 to $44.85 on the day thus far. Also, about 120 million shares had moved as of 1 p.m. Eastern.