Uber Targets $84 Billion Valuation in Landmark IPO as PayPal Invests $500 Million
Uber sets its IPO price between $44 and $50 per share to raise up to $9 billion, while revealing a surprise $500 million private investment from PayPal. The ride-hailing giant also warns investors of a projected $1 billion first-quarter loss.
Uber officially sets its initial public offering price between $44 and $50 per share, planning to sell 180 million shares on the New York Stock Exchange. This pricing strategy values the transportation giant at $84 billion and allows the company to raise between $7.9 billion and $9 billion. With an overallotment option, the total raise potentially reaches $10.4 billion.
The updated S-1 filing reveals a surprise $500 million private investment from PayPal at the IPO price. This financial injection coincides with an expanded partnership where the two companies plan to develop new digital wallet services together. PayPal currently serves as Uber's lead payment processor in the United States and Australia.
Despite the massive capital influx, Uber projects a significant first-quarter loss of $1 billion to $1.1 billion. This starkly contrasts with the $3.7 billion net income reported during the same period last year. The PayPal deal follows a separate $1 billion strategic investment from SoftBank, Toyota, and Denso announced just last week.