Uber Just Priced its IPO and Gets a Big Investment from PayPal

06:19 04/28/2019

Ride hailing company Uber's IPO is one of the most anticipated IPO's in history.
In an updated filing, the company has set a price range of $44 to $50 per share for its IPO, giving Uber a market cap as high as $83.8 billion. The company plans to raise about $10 billion for its IPO.

PayPal PYPL  has also announced that it will be investing $500 million into the company.

PayPal CEO Dan Schulman stated on LinkedIn that PayPal is extending its current partnership with Uber to build Uber’s digital wallet system. PayPal said it would buy $500 million worth of Uber stock at the IPO price.

Uber is expected to go public early next month on the NYSE and will be trading under the ticker UBER.

When Uber makes its debut in the market it will be a little over a month after its rival Lyft's debut, which has a market cap of about $16 billion.

“People are more cautious than they were 4 weeks ago,” warned Duncan Davidson, who is the general partner at Bullpen Capital.

The ride hailing giant, which runs its service in over 70 countries, has said that it has 91 million users.

“I’m a little scared of Uber at $100 billion,” NYU Stern professor Aswath Damodara told CNBC. “I think both Lyft and Uber are struggling with a way to convert revenue growth into profits. So you are paying $100 billion for a company that still doesn’t have a viable business model. That’s scary.”


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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