Uber Considers Pricing IPO Stock Toward Middle of Range
With an order book about three times oversubscribed, Uber has enough investor demand to sell shares at the top end of the range.
(Bloomberg) -- Uber Technologies Inc. is considering pricing shares in its initial public offering at the midpoint of the marketed range or slightly below, according to a person familiar with the matter, though that could still change before the official pricing is determined.
With an order book that’s at least three times oversubscribed, the ride-hailing company has enough investor demand to sell shares at the top end of the range, separate people familiar with the matter said Tuesday, all of whom asked not to be identified as the details are private. But the performance of rival Lyft Inc., which soared on its debut after increasing the price range and has since dropped more than 25%, is weighing on executives’ minds as they market the stock.
A spokesman for Uber declined to comment.
Executives from Uber have been travelling to cities including London, New York and San Francisco over the past 10 days to pitch the stock to potential IPO investors. The San Francisco-based company is offering 180 million shares for $44 to $50 each, raising as much as $9 billion if they were to price at the top of the range. At the midpoint of the range, the IPO would give Uber a market value of about $79 billion, based on the amount of stock to be outstanding after the offering.
To contact the reporter on this story: Eric Newcomer in San Francisco at enewcomer@bloomberg.net
To contact the editors responsible for this story: Mark Milian at mmilian@bloomberg.net, Elizabeth Fournier, Matthew Monks
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