Uber Technologies, which operates the world's largest on-demand ridesharing network, raised $8.1 billion by offering 180 million shares at $45, toward the low end of the range of $44 to $50. Additionally, PayPal agreed to invest $500 million in a concurrent private placement. Insiders plan to sell up to 27 million shares on the overallotment. At IPO, Uber commands a fully diluted market value of $82 billion.
Uber is the largest US IPO since Alibaba in 2014, and the largest IPO of a US-based company since Facebook in 2012. Close peer Lyft (LYFT) raised $2.3 billion in March by pricing at $72 per share, but has since traded down to $55.18 (-23%); it had last raised funding privately at $47.35 per share. Meanwhile, Uber is now coming more than $3 below its last round.
Uber Technologies plans to list on the NYSE under the symbol UBER. Morgan Stanley, Goldman Sachs, BofA Merrill Lynch, Barclays, Citi and Allen & Company acted as book-running managers, and RBC Capital Markets, SunTrust Robinson Humphrey, Deutsche Bank, and HSBC acted as joint book-running managers.
More Renaissance commentary on Uber:
Uber needs to thread the needle on bookings, take rate, and expenses
Ride or die: Uber vs. Lyft
Cash guzzler 2: Uber is losing more money than any IPO ever
