Apr 26, 2019

Uber sets IPO terms, could be valued at $84 billion

Illustration: Aïda Amer/Axios

Uber on Friday morning disclosed that it plans to raise upwards of $9 billion in its IPO, at a market cap that could approach $84 billion.

Why it matters: If successful, this would be one of the largest IPOs of all time. It also would help validate some of the record-high prices that venture capitalists have paid to invest in private, growth-stage "unicorns."

The ride-hail giant will offer 180 million shares at between $44 and $50 per share. At the low end of that range, Uber would be valued lower than in its most recent private round.

  • The total offering amount could top $10.3 billion, including possible secondary sales by existing investors like Benchmark, First Round Capital, TPG and Lowercase Capital.
  • PayPal has agreed to buy $500 million worth of shares at the IPO price. Its part of an expanded partnership between the two companies, albeit one that is not exclusive in either direction.
  • Uber's fully-diluted valuation would be between $80.5 billion and $91.5 billion.
  • 3% of IPO shares are being reserved to be purchased by eligible drivers. Uber originally planned a top "driver appreciation reward" of $10,000, but now has higher tiers of $20,000 and $40,000.
  • Uber reports "projected" Q1 2019 revenue of between $3 billion and $3.1 billion, versus $2.58 billion in revenue for Q1 2018.

Go deeper: Inside Uber's IPO filing

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The coronavirus is Trump's slow-burn crisis

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At 6:30 p.m. from the White House press room, President Trump will publicly make himself the face of America's response to the coronavirus crisis.

Why it matters: This is exactly the situation where a president needs the credibility to truthfully explain a tough situation to the public.

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Photo: Samir Hussein/Samir Hussein/WireImage

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Why it matters: It's a rare intervention by Obama, whose former vice president is facing a critical primary in South Carolina on Saturday. Obama has said he has no plans to endorse in the Democratic field.