The chief executive of Uber has urged employees to ignore “pessimistic voices” after shares in the company slumped again on their second day of trading since Friday’s disappointing stock market debut.
Uber’s hopes of a surge in the price of its shares have fallen flat, as investors gave the taxi-hailing app’s eagerly anticipated stock market float a frosty reception by sending the shares below their launch price.
Uber is seeking a valuation of $82.4bn, less than the $100bn it was hoping for, but still making it one of the largest IPOs of all time, and one of the most hotly anticipated stock market listings in the tech world since Facebook made its Wall Street debut seven years ago.
Good luck to those Uber workers protesting about wages and working conditions. They picked their moment to coincide with this week’s IPO in New York, in which the company is set to be priced at $90bn (£70bn) or thereabouts, and they chose well. You do not have to be a bleeding heart liberal to think something obscene is happening when Uber drivers tell tales of sleeping in their cars to make ends meet while the founder, Travis Kalanick, has his shareholding valued at roughly $7bn.
A lot of very rich people will get even richer when Uber goes public on 9 May in one of the most anticipated initial public offerings (IPO) to hit the stock market in 2019.
Travis Kalanick, Uber’s founder, could see his 8.6% stake in the company valued at close to $8bn if the company is valued at $90bn plus.
Who wants to invest in a company that has never made a profit, admits it may never do so and is on the brink of war with its global workforce? Probably a fair old chunk of Wall Street, as it happens. This week Uber, the ride-hailing and food delivery service, will put a price on the shares it will issue in the largest tech company float since Facebook in 2012.
The San Francisco-based company hopes to raise $10bn in a listing valuing it at $90bn. Dara Khosrowshahi, the chief executive, embarked on a pre-float roadshow last week, touring hotel function rooms from New York to London, addressing halls thronged with investors and asking them to give Uber a five-star rating.