Overnight, ridesharing giant Uber made its S1 filing as part of its initial public offering, revealing the company made US$10 billion worth of operating losses since 2016. It also warned more operating losses are expected and it “may not achieve profitability”.
The filing suggests Uber is pitching itself to investors as a platform company rather than a ridesharing one, despite the latter currently making up the bulk of its income.
The Uber IPO is expected to be the biggest public listing this year with the company expected to debut on the New York Stock Exchange at US$100 billion. Uber shares will most likely be priced around $48 – $55 each, according to The Wall Street Journal.
If it does reach that estimate it would be the largest debut since Alibaba listed in 2014 with an initial market value of US$169 billion. Bloomberg reports the company will begin a “roadshow” to market its shares to possible investors with the company to debut in May.
According to the filing, the company is expecting to raise US$10 billion. US banks and financial institutions including Morgan Stanley and Goldman Sachs lead the upcoming offering.
The document also showed the California company had a net income of US$997 million for 2018 driven mostly by the sales of assets in South East Asia and Russia.
In its filing, Uber CEO Dara Khosrowshahi said taking this step means the company, which has faced a raft of criticism over its culture problems and social impact, will have even greater responsibilities to its shareholders, customers and colleagues.
He said, “That’s why, over the past 18 months, we have improved our governance and board oversight; built a stronger and more cohesive management team; and made the changes necessary to ensure our company culture rewards teamwork and encourages employees to commit for the long term.”
Uber’s main competitor Lyft debuted on the Nasdaq earlier this month with its value soaring on the first day with its shares up 8.7 per cent to US$78.29 and a valuation of US$26.5 billion.
However, a few days later with its value sunk well below its IPO. Despite the drop, analysts aren’t too concerned because fellow tech giants like Facebook and Snapchat also had their valuation drop after debuting.
The company will be listed on the NYSE under “UBER”. The full IPO listing can be seen here.
Other technology giants expected to publicly list include Pinterest, Airbnb and Etsy.