Uber aims for $120bn valuation in IPO
The controversial ride-sharing company Uber has received several proposals from serious contenders on Wall Street putting an IPO value in the range of $120bn, almost double the company’s valuation during a recent funding round.
Insiders have estimated the IPO could potentially be taking place in the early months of 2019.
Shock To Motor Industry
This huge figure is a shock to the car world: it surpasses the mark value of former industry giants, General Motors, Chrysler and Ford combined.
Many analysts consider this another signal that technology companies are where future growth opportunities will be found.
The banks which delivered the proposal to executives at Uber were Goldman Sachs and Morgan Stanley, as part of a fairly standard run-up to the IPO process.
The documents are designed to help companies communicate a share price to potential investors, and considered due diligence before any formal underwriting stage of the process.
Investing In Unicorns
Founded in the aftermath of the financial crisis, Uber is one of the only tech ‘unicorns’ (startups exceeding $1bn in value) not to have gone public.
As companies seek to maintain control without ceding decision making power to shareholders, they are considering other financing options.
Uber, for example, appears to have an extremely healthy source of finance from wealthy private investors and public rounds of funding.
Nevertheless, potential investors will be excited at the potential of Uber publicly floating the company in what has otherwise been a relatively bear-like market.
The latest round of talks and documents seems to indicate the executives at Uber are starting to warm to the idea: positive news for many in Silicon Valley and Wall Street.
Uber’s rise to the top has not been without its fair share of controversy, however: in recent years, there have been claims of sexual harassment; corporate espionage; a successful attempt to push out its founder, Travis Kalanick (which some have likened to Apple pushing out Steve Jobs before his triumphant return) and infighting.
New chief executive, Dara Khosrowshah, appears to have had somewhat of a steadying hand on the volatile firm, calming disputes and appeasing uneasy investors.