Uber was one of the most hyped-up and highly anticipated IPOs for 2019, also having investment analysts pinning the title of potentially the biggest IPO in years to Uber’s initial offer.
However, Uber failed by all means to meet the standards set even a year before the ridesharing giant went public.
On the side of being unprofitable and recording losses as the majority of tech companies looking to go public, Uber dropped by -7% on the first sale, that way earning negative points and becoming one of the rarest IPO fails in the market.
Uber IPO Said to Be the 5th Worst IPO in the Last 25 Years
According to the list of IPOs that have dropped on the first-day trade in the last decade with estimates above 1 billion dollars, Uber is taking the 4th spot with over -7% loss on the opening day trade.
However, Uber has taken a spot on the list of top worst public offers in the last 25 years as well.
In accordance with data collected by Dealogic, Uber is the 5th worst IPO in the last 25 years among companies that had evaluation estimates set at least at 10 billion dollars.
Why Uber IPO Failed to Meet the Target Share Price?
Uber appeared to have chosen a wrong day to go public, as trade war tensions between the US and China are increasing with the United States and China both imposing horrifically tight tariffs.
Additionally, Lyft, another ridesharing company that went public at the end of March, have dropped by over -23% on its first day, perhaps indicating that the ridesharing market is just not mature enough at the present.
Although the failure of Uber IPO might have come as a surprise, Dara Khosrowshahi, Uber’s CEO, claims that the company expected to have a highly volatile day back on May 10th when Uber shares opened for trading.