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Uber To Take Company Public, Initial I.P.O. Valued at $120 Billion as it Rushes to Beat Rival Lyft Into Public Markets — 6 Points

1. On Thursday, Uber filed paperwork announcing that the company is going public. According to many analysts, this will be “one of the biggest and most anticipated tech company stock market debuts ever.”

2. Uber filed its paperwork on the same day as Lyft, who is also seeking an initial public offering. The companies are both trying to beat the other into the public markets. 

3. Both companies are hoping to reach the public markets in the first half of next year. This is because: 1) there is currently a “fair climate” for technology I.P.O.s and 2) an earlier I.P.O would avoid “worries of a potential economic recession.”

4. In an initial estimate, investment bankers predict Uber could be worth up to $120 billion in an I.P.O. That would “be the biggest offering since the Alibaba Group of China began trading on the New York Stock Exchange in 2014.” The $120 billion would be around the same valuation as I.B.M. and McDonald’s.

5. Uber will, however, face challenges in going public. Namely, Uber is not profiting currently. Last month the company lost $1.07 billion.

6. Still, Morgan Stanley and Goldman Sachs have announced that they would take Uber Public. JPMorgan Chase have announced it would take Lyft, which us valued by private market investors at $15 billion, public as well.

Source: https://www.nytimes.com/2018/12/07/technology/uber-ipo.html

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