Ride-hailing startup, Uber is reportedly set to kick off its initial public offering (IPO) roadshow on Thursday and is seeking to raise about $10 billion. According to Bloomberg, this listing is expected to be the largest U.S. IPO this year and among the 10 largest in history behind Facebook ($16 billion) and Alibaba ($25 billion).
Although it has released partial financial results for years, this filing with the U.S. Securities and Exchange Commission (SEC) will provide potential investors with the first complete look at its paperwork. After that, the company plans to start trading in May.
Launched in July 2010, Uber is king of the ride-hailing industry with 75 million riders and 3 million drivers on its platform. Recently valued at $76 billion in the private market, this listing could see the platform valued as high as $120 billion in an IPO.
According to Bloomberg, details on the number of shares to be offered and the intended price range likely won’t come until a later filing.
Despite its series of scandals (sexual harassment, massive data breach, use of illicit software to evasion of authorities and allegations of bribery overseas) the startup reported $50 billion in gross bookings for 2018. This is a 45% increase from 2017.
The company also reported $3 billion in Q4 2018 revenues with net losses of $865 million. This represents a year-over-year quarterly growth rate of 25 percent.
The company also made a loss of $1.8 billion last year, and many potential investors are worried about slowing growth. But with its intending IPO, its financial files that would be released alongside should address some of these concerns.
The offering, scheduled for the New York Stock Exchange (NYSE), will be led by Morgan Stanley who will be promoting the stock to investors. Other banks including Goldman Sachs Group Inc. and Bank of America Corp would also be involved.
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