Uber wanted to go public with the $120 billion valuation pitched by bankers at Morgan Stanley and Goldman Sachs ahead of its IPO, but the company ultimately listed with a $75.5 billion market cap.
One reason is that institutional investors, many who privately owned Uber stock, didn’t want to buy more shares at the higher price, according to The New York Times.
Uber had taken more than $10 billion from institutional investors and private equity firms, among other investors, according to the report. Many bought their Uber shares at valuations below $61 billion.
So it wasn’t an easy pitch to get the same institutions to buy more stock at nearly twice the price, according to the report.
on the Business Insider homepage.
Uber’s mega IPO would have been even bigger if it weren’t for institutional investors.
The ride-hailing company, which went public last week with a market cap of $75.5 billion, initially tried to garner a $120 billion price tag in its IPO. That’s the valuation bankers at Morgan Stanley and Goldman Sachs pitched to the company at the start of the process.
The Wall Street Journal reported that figure in October, and it held shape until April, when the company
Source:: Businessinsider – Finance