Maria Montero

Uber files confidentially for IPO

Two days after Lyft submitted the documents to the U.S. Securities and Exchange Commission for an initial public offering in early 2019, Uber has followed suit, according to The Wall Street Journal.

The company confidentially filed for an IPO on Friday, marking the start of a race for the two giants out on the stock markets.

Uber’s most recent private market valuation was a whopping $ 72 billion, though the nearly 10-year-old business expects Wall Street to value it at up to $ 120 billion in what will be one of the most anticipated IPOs of the world. the decade. .

Uber did not immediately respond to a request for comment.

Founded in 2009 by Travis Kalanick, Uber has raised a total of nearly $ 20 billion in a combination of debt and equity funds, according to PitchBook. SoftBank alone has invested billions in the company to become its largest shareholder. Uber’s other key backers are Toyota, which invested $ 500 million a few months ago, as well as late-stage investors T. Rowe Price, Fidelity and TPG Growth.

First round capital, Lowercase Capital and others make a lot of money from Uber’s exit, all participating in some of the company’s early rounds of venture capital.

The presentation comes a little earlier than expected. Uber’s current CEO Dara Khosrowshahi previously said that she expected the company to complete an IPO in mid-2019, but today’s news puts Uber on the verge of debuting in the first quarter of next year.

“[Uber] It has all the disadvantages of being a public company, with the focus on us, without any of the advantages, “Khosrowshahi said on stage at the New York Times Dealbook conference in 2017.

Uber shared its third-quarter financial results recently, with net losses of up to 32 percent qoq at $ 939 million on a pro forma basis. Based on earnings before interest, taxes, depreciation and amortization (EBITDA), Uber’s losses were $ 527 million, an increase of about 21 percent in the quarter. The company said revenue was up 5% in the quarter at $ 2.95 billion and an increase of 38% year-over-year.

It appears that Uber’s IPO timeline was moved forward following the reports of Lyft’s confidential IPO documents. Lyft, Uber’s biggest competitor in the US, will also launch in the first quarter of 2019. The company was most recently valued at around $ 15 billion. Its IPO will be underwritten by JPMorgan Chase and Credit Suisse Jeffries.

2019 will be a fascinating year for unicorn exits with a separate report stating that Slack is also preparing its IPO and has engaged Goldman Sachs to underwrite its offering. Lyft, Uber, and Slack are only worth an aggregate valuation of $ 94 billion, which means that 2019 will undoubtedly bring some much-needed liquidity to a host of tech investors.