Ride-hailing giant Uber cuts IPO valuation target
Ride-hailing company Uber, which is expected to begin selling shares publicly within days, has lowered its valuation target to a range of $80 billion to $91.5 billion, down from earlier analyst estimates of as much as $120 million, according to a published report.
The reduced valuation follows a disappointing performance by rival Lyft's recent initial public offering (IPO).
Uber, which aims to raise as much as $10.35 billion, plans to sell 180 million shares in its IPO with a price range of $44 million to $50 million, valuing the San Francisco-based company at up to $91.5 billion, the Wall Street Journal said Friday.
That's lower than earlier analyst estimates from Morgan Stanley and Goldman Sachs that valued the company at as much as $120 billion.
The San Francisco-based company said in a regulatory filing that it is pricing shares between $44 and $50 per share and expects to sell 180 million shares and another 27 million to insiders.
Also, Uber reported a net loss attributable to the company for the first quarter of 2019 of around $1 billion and revenues of roughly $3 billion. That resembles the financial performance of rival Lyft, which recently went public and saw its shares fall rapidly.
CLICK HERE TO GET THE FOX BUSINESS APP
If the underwriters exercise their option to purchase stock, Uber stockholders will sell 27 million shares.
In addition, the company said PayPal will make a roughly $500 million investment in the company.
The Associated Press contributed to this report.