Uber shares fall on debut after $8.1bn IPO
Shares priced at low end of indicated range to avoid market struggle
Uber Technologies chief executive Dara Khosrowshah during the opening bell of the trading session on the New York Stock Exchange (NYSE) during the company’s IPO in New York. Photograph: Andrew Kelly/Reuters
Uber Technologies’ shares fell nearly 9 per cent on their New York Stock Exchange debut on Friday, marking a rocky start for one of the most high-profile US companies to go public since Facebook seven years ago.
The fall in shares undermined Uber’s strategy of pricing its oversubscribed IPO conservatively at $45 per share to avoid a repeat of rival Lyft’s stock market struggles following a strong debut in March.
It also left the company’s market value below its last private funding round, with a market capitalisation of below $74 billion. Uber last raised money from Toyota Motor in August at a valuation of about $76 billion.
The shares opened at $42 and touched a low of $41.06 in early trading before recovering most of their losses to trade down 2 per cent at $44.17 by 2pm in New York.
Uber sold 180 million shares for $45 each Thursday, after marketing them for $44 to $50 apiece. – Reuters / Bloomberg