Uber IPO could put company value at $120B, report says
Goldman Sachs and Morgan Stanley said to have delivered valuation proposals to ride-hailing company
Uber may put forth an initial public offering early next year that values the ride-hailing business at as much as $120 billion US, according to a media report.
The Wall Street Journal said Tuesday that Uber Technologies Inc. received valuation proposals from Goldman Sachs and Morgan Stanley last month. There is no guarantee Uber will fetch that valuation, or go public soon.
If it does, and at that price, the company would be worth more than Ford Motor Co., General Motors Co. and Fiat Chrysler Automobiles combined.
The ride-hailing company's most recent valuation was pegged at $76 billion US, following a $500-million investment from Toyota Motor Corp in August.
There are hurdles for Uber, past and present. In addition to a series of scandals including workplace sexual harassment, theft of intellectual property and the ouster of its co-founder, the company is facing increasing competition.
Uber and smaller rival Lyft have been actively preparing to go public next year, and the Journal reported that Lyft has picked underwriters for a public offering expected in early 2019.
While Lyft has hired IPO advisory firm Class V Group LLC, Uber is behind in its preparations. Lyft was valued at $15.1 billion US earlier this year.
Uber hired Nelson Chai as its chief financial officer in August, filling a long-standing vacancy and clearing the way for its much-anticipated IPO.
Uber declined to comment on the Wall Street Journal report.
With files from Reuters