Initial public offering (I.P.O.) entails the processes by which private corporates transition into public by initiating a considerable sales of its stocks to the general public. An example of a private company that has gone I.P.O. in 2019 is Uber Technologies, Inc. On May 9, 2019, Michael J. de la Merced and Kate Conger from the New York Times published an article that reported Uber’s earnings from its public offering move. The company initiated an I.P.O. Move-in which its shares got to its lowest prices ever at $45. Uber’s decision to go public earned the company a total of $8.1 billion when it sold more than 180 million shares, each valued at $45 each (Merced & Conger, 2019). Some of the corporates that invested in Uber's I.P.O. Sales include Alphabet Inc. Microsoft Corp., and BlackRock Inc.
Uber's I.P.O. shares began to trade in the New York stock exchange markets while suing the symbol UBER. They had high market capitalization, which the article only compares to that of Alibaba. Compared to the previous approach in which the company raised a total of $76 billion, the I.P.O. The plan was better placed as it grew more capital. Uber has several bank underwriters that participated in making professional decisions such as pricing and marketing its I.P.O. Morgan Stanley, Goldman Sachs as well as Bank of America are Uber’s consultant banks and who cautiously priced the stocks at $45 each (Merced & Conger, 2019). However, analysts have expressed concerns that the ongoing trade war against China is likely to promote Lyft, which is a significant competitor to Uber.
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Uber’s investors did not unanimously express happiness for the company's I.P.O. Decision. A section of investors, however, have shown considerable excitement over the potential income valuation that could range up to more than $120 billion. Even as the company's stock market remains under pressure, some of the concerns have shifted from its initial performance. New investors are now concerned about Uber’s long-term financial goals.
References
Merced, M. J., & Conger, K. (2019, May 9). Uber I.P.O. Values Ride-Hailing Giant at $82.4 Billion . Retrieved from N.Y. Times: https://www.nytimes.com/2019/05/09/technology/uber-ipo-stock-price.html
