Uber's IPO came against a backdrop of turbulent financial markets fuelled by the trade dispute between the US and ChinaNew York — Uber Technologies priced its initial public offering on Thursday at the low end of its targeted range to value the company at $82.4bn, hoping the conservative approach would let it avoid the market chaos suffered by rival Lyft.
Uber's IPO came against a backdrop of turbulent financial markets, fuelled by the trade dispute between the US and China, as well as the plunging share price of Lyft, which is down 23% from its IPO price in late March. The IPO was oversubscribed, but Uber settled for a lower price to avoid a repeat of Lyft's IPO in late March, which priced strongly then plunged in trade. Uber also wanted to accommodate big mutual funds, which unlike hedge funds put in orders for a lower price.
In meetings with potential investors the past two weeks, Uber CEO Dara Khosrowshahi argued that Uber's future was not as a ride-hailing company, but as a wide technology platform shaping logistics and transportation.The company is hoping this pitch, coupled with any fear of missing out what is expected to be the biggest IPO of 2019, will support demand.