Market history · New issues ·
Uber lists below its offer price
Uber priced its IPO at $45 a share on 9 May 2019, near the bottom of its $44 to $50 range, valuing the company at about $75.5 billion, well below the roughly $120 billion it had reportedly sought. CNBC reported that when trading began on 10 May at the New York Stock Exchange the shares opened at $42, and CNN reported that they ended the day more than 7% lower.
It was a rare case of a heavily publicised listing starting below its price, in a year when several loss-making technology listings met a cooler reception, among them WeWork's failed attempt in the autumn.
The takeaway
Not every large listing rises on day one. A big name and a big offering do not guarantee demand at the price.
Sources
This is a retrospective about a past event, provided for general information. It is not investment advice, does not describe RockLake's positioning at the time, and past performance is not a guide to future performance. Read the risk warning.