Uber files much awaited IPO, reveals loss of $1.8B in 2018
Uber filed for its IPO on Thursday. The offering is set to be at $100 billion. However, the company reveals that it lost $1.8 billion last year.Sindhu Kashyap
In one of the most awaited IPOs of the world, San-Francisco based ride-hailing giant Uber announced what could be one of the biggest IPOs of all time. The offering could value Uber at a whopping $100 billion. Shares will begin trading from May on the New York Stock Exchange.
Reports suggest that this share sale would make it the biggest since China's Alibaba Group began trading on the New York Stock exchange five years back. This valuation would put Uber's value more than double of FedEx and over four times that of United Airlines' parent.
Uber, however, hasn't disclosed the valuation it is seeking from the public investors. The company was last valued at $76 billion.
The company's filings also revealed that it made a loss of $1.8 billion last year on a revenue of $11.3 billion. In a letter, CEO Dara Khosrowshahi wrote accompanying the prospectus, he said:
"We will not shy away from making short-term financial sacrifices where we see clear long-term benefits."
Although it is a privately held company, Uber also disclosed its quarterly results for two years 'to bring in clarity and visibility'. Its filings also reveal that it made a profit of $997 million in 2018.
Earlier this year, Uber's US competitor Lyft, another loss making company, went public at the valuation of $24 billion. However, its shares dropped by more than 7 percent after Uber's valuation news hit the market.
Additionally, social media company Pinterest, a company losing money as well, has set a price range for its public offering below its last valuation.
Late last month, Uber acquired Dubai-based Careem with a combined cash and convertible deal worth $3.1 billion.