Uber on Friday set a price range of $44 to $50 per share for its initial public offering in an updated filing, giving it a market cap of 83.8 billion at the high end… far less than expected.
The company, which is beginning its IPO road show on Friday, seeks to raise about $9 billion in cash and will tender 180 million shares.
On a fully diluted basis, Uber’s valuation would be $80.53 billion on the low end of the range and $91.51 billion on the high end.
Early reports suggested Uber could be valued as high as $120 billion.
Even at the high end of Uber’s range, its valuation would be well below what many expected. The company’s market cap would be $73.7 billion at the low end of its range. Uber’s last private valuation was about $76 billion.
Also Friday, PayPal (NASDAQ:PYPL) announced that it will invest $500 million in Uber. PayPal CEO Dan Schulman said in a statement on LinkedIn that PayPal is extending its current partnership with Uber to build Uber’s digital wallet system. PayPal will reportedly buy $500 million worth of Uber stock at the IPO price.
Uber also reported its first-quarter 2019 financials. The company reported revenue of about $3 billion and a net loss of about $1 billion.
Uber is expected to go public early next month on the NYSE under the ticker UBER. Its IPO will happen a little over a month after its chief rival Lyft’s (NASDAQ: LYFT) IPO.
PayPal’s stock price dropped $1.76, or 1.6%, to $108.46, while Lyft’s slipped $1.44, or 2.6%, to $54.90
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