In its latest regulatory filing, Uber has confirmed a leak published late last night by the Wall Street Journal that the world's most valuable 'unicorn' has once again lowered its valuation ahead of its upcoming IPO, a sign that the post-debut struggles of Uber's smaller rival, Lyft, have put a meaningful dent in expected demand.
According to a Bloomberg report on the filing, Uber is hoping to raise $9 billion in its IPO, which would leave the company with a total valuation of $91.5 billion on a fully-diluted basis, which incorporates all warrants, options and restricted shares granted to private backers and company insiders.
Uber will offer 180 million shares at between $44 and $50 each, down from an earlier range of $48 to $55 that it had cited in documentation provided to holders of the company's convertible notes. Uber's debut on the NYSE next month is expected to be the biggest in a year where many of the hottest Silicon Valley 'unicorns' - companies like Slack and Airbnb - are expected to finally go public. Already, Lyft, Pinterest and Zoom Communications have held closely watched initial offerings, though the outcome has been decidedly mixed, as investors have finally started to second-guess valuations that appear entirely divorced from fundamentals.
When Uber filed its S-1 earlier this month, the ride-share giant disclosed a $12 billion aggregate five-year loss.
Though the valuation range is far lower than the $120 billion that investment bankers had once pitched to Uber's management, a debut within this range would still make Uber's one of the ten largest US IPOs in history - and the largest on a US exchange since Alibaba's 2014 IPO, where the Chinese tech and e-commerce behemoth raked in $25 billion. Lyft's sale of $2.34 billion in stock at its offering has been the biggest of the year so far.
Uber plans to price its IPO on May 9. That means shares will likely start trading the following day (May 10), which is a Friday. According to Bloomberg, the company will embark on its pre-IPO roadshow on Friday with meetings in New York. The rest of the schedule is as follows:
- April 29: London
- April 30: New York
- May 1: Boston
- May 2: Mid-Atlantic/San Francisco
- May 3: San Francisco
- May 6: New York
- May 7: New York/Mid- West
- May 8: Mid-West