Uber is aiming to price its IPO at the midpoint of its target range or below, a source familiar with the matter told CNBC, according to Quartz. Uber is expected to price its shares Thursday and start trading Friday.
Uber set a price range of $44 to $50 per share for its initial public offering in an updated filing last month. On a fully diluted basis, that would put Uber’s valuation at $80.53 billion on the low end of the range and $91.51 billion on the high end. At the midpoint of its stated range, Uber’s valuation would be about $86 billion on a fully diluted basis.
Analysts have remained skeptical of Uber’s lofty valuation as its competitor Lyft has fallen during its short tenure on the public market. The price range Uber provided last month already shaved off some of the expected market value, which was originally expected to be as high as $100 billion. According to its S-1, Uber posted an adjusted EBITDA loss of $1.85 billion for 2018 and showed slowing revenue growth.
CEO Dara Khosrowshahi was offered a steep incentive to keep Uber’s valuation up once it goes public, according to a recent report from The New York Times. Sources told the Times that if Uber’s valuation remains above $120 billion for 90 consecutive days, Khosrowshahi will gain net stock bonuses topping $100 million.
- Uber aiming to price IPO at or below midpoint of range; special bonus for CEO Khosrowshahi.