For a potential initial public offering (IPO), Wall Street banks have reportedly given Uber proposals that value the company as high as $120 billion. According to people with knowledge of the matter, the IPO could happen early in 2019, The Wall Street Journal reported.
At $120 billion, the company would be worth roughly two times as much as it was two months ago in a funding round. The company last brought in money in August from Toyota Motor Company and had a valuation of approximately $72 billion. But, with the recent proposals, the company would have a higher value than Fiat Chrysler Automobiles NV, Ford Motor Company and General Motors put together. While it is unclear what valuation Uber would have at its IPO, Uber CEO Dara Khosrowshahi has said that the company is looking for a target date in the second half of next year.
With 120 companies using initial public offerings (IPOs) to raise more than $35 billion on U.S. exchanges, companies are raising capital through the markets at an uncommonly fast pace compared to the past 20 years. Dealogic data indicates that this year’s activity is the highest volume since 2014, as well as one of the busiest years on record, The Wall Street Journal reported in July.
While bankers do not have a clear reason as to why companies are seeking capital in the public markets, favorable business conditions might be at play. The stock markets are strong, and investors are seeking companies with high growth. Neither bankers nor lawyers expect this fast pace of IPOs to slow for the remainder of the year. And Morgan Stanley’s Evan Damast said that the “global IPO pipeline is stronger now than it’s been since the financial crisis.”
Pinterest, in particular, is nearing $1 billion in advertising revenue and is eyeing an IPO in the middle of next year. CNBC reported that Pinterest had $500 million in sales last year and is now on pace to nearly double that in 2018.
Articles listed with Cash Tech News as the author are either general information, or may have been imported from another website, to bring our readers a rich media experience that encompasses articles that we find interesting, as well as those curated by others.
The views and opinions expressed here are for informational purposes only, and should not be confused with professional financial advice. These opinions are solely those of the author and do not necessarily reflect the views of CashTechNews.com. Every investment and trade involves risk. You should conduct your own research, and contact your professional financial advisor before making any investment.
Corrections, feedback, and ideas should be submitted through the website contact form.