On April 12, Uber company announced the upcoming placement of its shares through an IPO on the New York Stock Exchange. However, the procedure was not entirely successful. If last year the company was estimated at $ 120 billion, then after the first day of trading, its capitalization was only $ 76 billion.
Before the IPO, underwriting banks estimated the value of one share in the range from $ 44 to $ 50. As a result, the average price of one paper at placement was $ 45. But as soon as the auction went into the public stage, the players began to work for a fall. During the first day of trading, shares lost 6.7%, dropping to $ 41.57. However, now there is nothing critical in the situation.
Following the initial placement, Uber was able to raise $ 8.1 billion. This is the largest amount since 2014, when shares of the Chinese company Alibaba appeared on the New York Stock Exchange.
Although a total of investors lost $ 617 million on the first day, now there is no need to talk about real losses. American trading platforms are in a difficult situation. Over the past week, indices fell by 2-3%. Due to the aggravation of the trade conflict between the United States and China, players are trying to exercise extreme caution. In such a situation, those investors who aim at long-term capital allocation benefit. As soon as the situation stabilizes, the demand for financial assets will grow.
From the application for the initial public offering, data on the financial performance of the company became known. In 2018, it was able to generate revenue of $ 11.3 billion with expenditures of $ 3.03 billion. At the same time, it had a net profit of $ 997 million. Moreover, Uber notes that in the future the figures may not be so positive. In some countries, the authorities impose restrictions on the activities of the service, and competitors are trying to occupy their niche through dumping policies.
Uber services are used by more than 90 million people worldwide.. In some regions, the company is the largest player, which allows you to count on good financial results in the future.
The key investor of the company is a bank from Japan SoftBank, it owns 16.3% of the shares. Another 11% is owned by the venture fund Benchmark, which was able to acquire an asset in the early stages. The company's founders Garrett Camp and Travis Kalanick each hold 6 and 8.6% shares, respectively.
Remarkable is the fact that the fall in the cost of Uber almost coincided with the rise in the price of cryptocurrency. Over the past two months, the market capitalization of digital financial assets has grown to $ 220 billion, and Bitcoin in just two days has added more than $ 1,000.
Now one bitcoin coin is valued at $ 7,200, which means that the demand for this asset is hanging. And the growth was not provoked by some fundamental indicators, experts say about the activation of pent-up demand.
Probably, the Uber IPO procedure itself was launched at the wrong time. The general decline in the market and the growing tensions in trade between the United States and the People's Republic of China are forcing players to diversify risks. Well, the current CEO of the company Dara Khosrovshakhi suffered the most from the unsuccessful placement of shares. If its capitalization lasts for $ 90 billion within 90 days, it will receive a bonus of $ 100 million. However, the chances for such a development are very low so far.