Uber IPO price sets company value at roughly $82B

Uber is the Amazon of transportation: Shervin Pishevar

Angel investor Shervin Pishevar on the outlook for Uber.

Uber Technologies Inc. is leaning toward pricing its initial public offering at $45 a share, below the midpoint of its expected range, according to people familiar with the matter, in the largest new issue in five years.

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At that price, Uber would command a valuation of roughly $82 billion, making it the largest U.S.-listed IPO since Alibaba Group Holding Ltd. went public in 2014. Still, that’s less than the valuation of as much as $100 billion the ride-hailing giant had earlier targeted.

The pricing sets the stage for Uber’s much-hyped trading start Friday, the biggest moment in a year that could break records for IPO activity. How the shares trade could help set the tone for the rest of the year, with other big technology startups like WeWork Cos. and Slack Technologies Inc. still waiting in the wings.

It’s far from certain the market will warmly welcome Uber shares. Shares of Lyft Inc., Uber’s closest rival, have stumbled badly since they began trading in March, down more than 20% from their IPO price. Mindful of that, and an uptick in market jitters in recent days, Uber and its underwriters are taking a conservative approach to pricing the shares after two weeks of roadshow meetings with investors. There was demand for the shares at higher prices, the people said.

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