Uber IPO date and value – taxi firm valued as high as $120billion by world’s top banks
The controversial taxi app isn't making a profit, but that didn't stop bankers giving it an enormous valuation
BANKERS and investors are getting hot under the collar about an Uber IPO – but what does it mean, and why is it important?
We reveal why ride-sharing app maker Uber is being valued as high as $120billion by experts, and when you'll be able to buy your own Uber shares.
Uber IPO – what is an IPO, and why is it important?
Uber is a private company, which means any shares aren't available for the general public to buy.
Other tech companies – like Apple or Google – are public, which means shares (or small chunks) of the business are available to buy openly on the stock market.
The term IPO stands for initial public offering, and it's the way a company like Uber moves from being a private firm to a publicly traded company on the stock market.
Uber will decide how much it thinks it's worth, and then sell an initial amount of shares at a certain price. Then anyone with cash can buy a small (or large) part of Uber.
Uber value – how much is it worth, and who values it?
The hot news from Wall Street is that Uber is worth a staggering $120billion (£90.9billion).
Public companies are easy to value, because you can simply multiply the number of shares by the value of a single share – giving you a total worth.
But valuing private companies can require extensive analysis.
According to the , people "familiar with the matter" suggest that Uber could be valued as high as $120billion.
That's a huge amount of money, given that in 2016 Uber only turned over $6.5billion in revenue.
Importantly, Uber racked up a net loss of $2.8billion – so it's not even a profitable enterprise.
The WSJ notes that Uber's valuation is worth more than the value of General Motors, Ford, and Fiat Chrysler Automobiles combined.
The valuation was reportedly delivered to Uber by Goldman Sachs and Morgan Stanley last month.
Banks offer these valuations to companies before an IPO, advising them on how much to charge per share.
This suggests that Goldman Sachs and Morgan Stanley are confident that Uber can deliver significant growth in the future – and generate plenty of money for shareholders.
Uber's most recent valuation – revealed during a fundraising round with Toyota Motor Co. in August – put the firm's total worth at $72billion.
Uber IPO date – when will the Uber IPO happen?
Sadly there's no firm date for an Uber IPO yet, but we do know one is coming.
Earlier this year, Uber's new CEO Dara Khosrowshahi confirmed that the company was aiming for an IPO in the second half of 2019.
That's very non-specific, and perhaps may no longer be true.
The WSJ writes that the IPO "could take place early next year".
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"There is no guarantee Uber will go public on the time frame or with the valuation envisioned by investment bankers hungry for fees," the WSJ report reads.
"The IPO market runs notoriously hot and cold, and though 2018 has been a strong year for technology and other issues, conditions could be less favourable when Uber is ready to list its shares.
"Indeed, one source said the banks are pitching the earlier listing in large part because of fears the IPO market will cool."
If you were going to invest in any tech company, which would it be? Let us know in the comments!
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