Uber, the Taxi-service giant has reportedly followed the footsteps of Lyft and has filed for an IPO two days after Lyft. Uber is quick to confidentially follow suit two days later. This confidential filing for an IPO took place this Friday on 7th December and sets the two ride-hailing giants into a race for the stock markets. However, despite the disclosure, Uber did not respond immediately with a comment.
Even though Uber’s private market valuation was at an incredible $72 billion, it reportedly expects Wall Street to value it as an even larger $120 billion industry. This statement alone makes it one of the most anticipated Initial Public Offerings to look out for in the upcoming year. Uber has already raised as much as $20 billion in the form of debt and equity fundings.
The biggest investor in the firm is by far, Softbank, which has already invested billions in the company and is their largest shareholder. Other backers behind Uber include Toyota which has already invested $500 million a few months ago along with other investors such as T. Rowe Price, Fidelity and TPG Growth. The company is speculated to well match their statements and get evaluated highly in Wall Street.
Lowercase Capital, First Round Capital, and others can earn a great deal from Uber’s exit as they were the investors in the company’s earliest venture capital rounds. Uber’s current chief executive officer Dara Khosrowshahi had previously recorded he desired for the company to complete an Initial Public Offering in mid-2019 but today’s news puts Uber in a position to debut in the first quarter of next year.
Khosrowshahi said on stage at the New York Times’ DealBook conference in 2017.
“Uber has all the disadvantage of being a public company, with the spotlight on us, with none of the advantages”
AS it would appear, Uber’s IPO timeline was pushed forward due to their biggest competitor in the US, Lyft, and their confidential paperwork filing for an IPO. As a result, both the companies are expected to take a plunge in early 2019. The company was recently valued at nearly $15 billion. Its IPO will be held by JPMorgan Chase and Credit Suisse Jeffries.
With Uber and Lyft filing for IPOs, 2019 would bring some much-needed liquidity to the tech investors. Furthermore, a separate report out today states that Slack is also preparing its IPO and has hired Goldman Sachs to take on the job. This would indeed make 2019 an exciting year with Lyft, Uber and Slack race against the clock to enter the Stock Market, aking the total worth come close to a staggering $94 billion.