Uber execs to hit the road for investor pitch ahead of IPO

NEW YORK • Over the past decade, Uber Technologies proved itself to be one of the most prolific young fund-raisers ever. It pulled together more than US$20 billion (S$27 billion) from private investors.

After burning through more than half that amount in just the last three years, Uber will soon see whether it can recreate that magic on the stock market.

The ride-hailing company entered the final stretch of the ultimate capital-raising exercise on Friday, when it disclosed details of an initial public offering expected to net the company and its backers another US$8 billion or more.

Executives and bankers plan to hit the road this week to promote the stock to public investors and then ring the bell on the New York Stock Exchange floor on May 10, when the shares start trading, according to a plan obtained by Bloomberg.

Uber chief executive Dara Khosrowshahi and his lieutenants will be joined by long-time allies from Morgan Stanley and Goldman Sachs Group on the roadshow, which starts tomorrow.

Over the years, the two banks helped Uber arrange private debt offerings, convertible loans and equity sales.

The company will take its expansive pitch - car rides, food delivery, autonomous cars, electric scooters, bicycle rentals - from London on Monday to New York on Tuesday, and then to the company's hometown of San Francisco on Thursday.

The projected IPO value is slightly lower than some early projections. Morgan Stanley and Goldman Sachs had pitched Mr Khosrowshahi last year on an IPO value of as much as US$120 billion.

That also happened to be the price at which the CEO and at least four deputies would earn a substantial performance bonus.

Instead, Uber is currently aiming for US$84 billion, or US$91.5 billion on a fully diluted basis, though that number could change, depending on demand.

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A version of this article appeared in the print edition of The Sunday Times on April 28, 2019, with the headline 'Uber execs to hit the road for investor pitch ahead of IPO'. Print Edition | Subscribe