The biggest IPO of 2019, Uber IPO has been finally started on Thursday, May 9th that is altogether with being announced as the biggest IPO since Alibaba (BABA) and Facebook (FB). At the opening sale that started on Thursday, May 9th, Uber started at the price of 45$, soon going down below the initial price and touching 41$ per share at the closing.
While many analysts suggested that Uber IPO was a definite buy, setting the share price above Uber’s share price target between 47$ and 55$, it appears that a few skeptics who suggested that Uber might be in for a rocky ride based on Lyft (LYFT) experience.
Lyft had a similar destiny, Uber’s ridesharing competitor that went public at the end of March 2019, dropping from the starting share price of 72$ and ending at 51$ over the course of 5 weeks.
However, it seems that Uber initial offer after all positive predictions and a major evaluation set between 90 and 100 billion dollars, ended up disappointing investors.
Uber IPO Preparations: What to Expect from Uber IPO in 2019?
Uber has a direct opponent in Lyft, another ridesharing company preparing to issue their IPO already at the end of March, that way gang advantage in oppose to the ridesharing giant, Uber.
However, Uber has a great potential to become one of the largest IPOs even beyond 2019, as the value of public offering is set at 120 billion dollars, in addition to having Uber already raising 20 billion dollars across private markets.
Back in 2017, Uber recorded profit of 7.5 billion dollars, with marking losses of 4.5 billion the same year, which was followed with a misfortunate case of Uber driverless cars crashing.
However, analysts consider that Uber offers an exceptional growth potential, as well as that there is a place for both Lyft and Uber in the market as the companies are after all leading different business policies and have different rates of growth potential.
Moreover, Uber is known by being ready to accept short terms losses in order to bring long-term profit to the company, and future shareholders once the IPO is out, while it is working on expanding their business and services and working on international expansion.