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Uber Technologies plans to sell $10 billion worth of stock in IPO

Uber, ride-sharing app, Middle East, Uber IPO, Alibaba Group
The company will widen its presence in the Middle East through acquisition of a Dubai-based ride-sharing startup Careem

Uber will make its IPO registration with the US Securities and Exchange Commission, and begin trading on the New York Stock Exchange in early May, selling $10 billion worth of stock. Most of the shares will be issued by the company, while a small ratio will be owned by Uber investors cashing out. The IPO is identified as one of the biggest in the technology industry since Alibaba Group’s public offering in 2014.

Uber is aiming for a valuation between $90 billion and $100 billion, according to Reuters. During the IPO roadshow, Uber Chief Executive Dara Khosrowshahi is expected to convince investors about the company’s cultural change and business practices, after a series of allegations in the last two years.

The company operates in more than 70 countries, and was recently valued at $76 billion in the private fundraising market. CFO Nelson Chai said that Uber has invested in India and the Middle East to demonstrate its leadership position in those high-potential international markets.

Uber will soon acquire Careem, a Dubai-based ride-sharing startup for $3.1 billion to take over the Middle East market. The acquisition will widen Uber’s presence in a region of some 400 million people. Last year, Uber’s revenue was $11.3 billion and gross booking from rides was $50 billion, up 45% from 2017.

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