Uber IPO oversubscribed by day two of roadshow

Bloomberg

Uber Technologies Inc. has demand for all of the shares offered in its initial public offering days after it began marketing the sale, people familiar with the matter said.
The initial investor feedback comes after Uber kicked off its IPO roadshow with meetings in London, the people said, asking not to be identified because the discussions were private. Uber met potential buyers in New York and will head to cities including Boston and San Francisco as it seeks to raise as much as $9 billion in its IPO next week in what will be the biggest listing of the year so far.
Demand for the share sale is currently focussed on the lower end of Uber’s targeted share price range, though that could still shift as talks with investors continue, the people said. That would put the amount that would be raised in the IPO closer to $7.9 billion.
A spokesman for the San Francisco-based company declined to comment. A representative for Morgan Stanley, which is serving as left lead for the IPO, also declined to comment.
The world’s biggest ride-hailing company is offering 180 million shares at $44 to $50 apiece, according to a regulatory filing last week.
At the top of the range, the listing would value Uber at almost $84 billion, based on the number of shares outstanding after the offering as detailed in the filing.
On a fully diluted basis, including the addition of stock options, restricted shares or other stakes not included in the outstanding total, the valuation could top $91.5 billion. That’s still down from initial estimates of about $120 billion from investment banks pitching for roles on the deal.
At the Manhattan roadshow, the Uber executives emphasised how they had turned around the company’s corporate culture. They faced questions about slowing growth, the total addressable market and self-driving cars, the people said.
Uber had an estimated net loss of $1.07 billion on $3.07 billion in revenue during the first quarter, according to its filings with the US Securities and Exchange Commission.
Revenue growth of the company slowed to 19 percent compared to the same quarter last year, down from 22 percent growth in the comparable fourth quarter, it said.
The company is betting expansion into new markets and new business areas will attract investors to its IPO. In London, Uber managers touted their plans to expand in logistics
and other transportation businesses, including scooters, autonomous driving and mass transit, a person familiar with the matter has said. Uber aims to become a one-stop shop for customers who would only need to use one platform for multiple services.
In addition to Morgan Stanley, Uber’s offering is being led by Goldman Sachs Group Inc. and Bank of America Corp.