Uber sold 180 million shares at $45 per share and has started its first day of trading on the New York Stock Exchange on Friday.
The initial public offering raised $8.1 billion valuing Uber at $82.2 billion.
According to Your Money.com the pricing at $45 per share was at the lower end of Uber’s indicated range, which went as high as $50 per share.
The conservative approach to the company’s valuation is likely to have been influenced by the recent performance of Uber’s smaller rival Lyft. The fellow ride-hailing app has had a disappointing run since it listed on the Nasdaq in late March, with its share price down by more than 20&, reports Your Money.com.
Uber’s growth has been exponential in recent years and it has established itself as a disruptive business model in the taxi industry, with a presence in more than 60 countries. However, the business remains loss-making.
Jordan Hiscott, chief trader at ayondo markets, commented, ‘I find it intriguing that investors would want to participate with this valuation as high as $82 billion, whilst still being a loss-making company. Admittedly that’s in the extreme short-term and for balance I actually find the company interesting on a longer term basis- mainly for its ability to harness the gig economy whilst also changing how we view and use automobiles for transport.’