Uber prices $8 billion IPO at $45, toward the low end of the range

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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

The article Uber prices $8 billion IPO at $45, toward the low end of the range originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO) , Renaissance International ETF (symbol: IPOS) , or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines , IPOs
Referenced Symbols: LYFT

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