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Risk And Reform: A Peek At Uber's Pre-IPO Roadshow

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Risk And Reform: A Peek At Uber's Pre-IPO Roadshow

Uber Technologies' executives and bankers will soon make their pitch to investors during its pre-IPO roadshow. CNBC's Leslie Picker offered her take on what the team's main selling points are likely to focus on.

'Not As Risky'?

Uber is pricing its IPO at around $86 billion on a fully diluted basis at the midpoint of its $80.5-$90.5 billion range. By comparison, Picker said, bankers at Goldman Sachs and Morgan Stanley valued the company at $120 billion just six months ago.

Uber's corporate governance structure is "conciliatory" compared to other companies valued at $1 billion or more, she said. For example, the company is set up with one class of shares, an independent chairman and all directors need to stand election each year.

"Uber and Lyft look incredibly similar in terms of cash burn and growth in user base," Shawn Cruz, senior trading specialist at TD Ameritrade told Benzinga. "That might be why you’re seeing Uber coming in and be a little less aggressive with their pricing."

'Reformed' Culture

Picker said Uber's history under Travis Kalanick had its share of controversy but the company highlighted in marketing materials it has "reformed" its culture. The company is collaborating appropriately with regulatory bodies to seek out and expand into new markets.

Uber's losses for the first three months of 2019 alone were around $1 billion. If the competitive landscape in Uber's two core markets of ride-hailing and food delivery doesn't ease, Picker said loses could continue.

Picker said Uber's main selling point to investors is that it's an "Amazon-like company" with large losses today but can one day become a "mecca of transportation."

Related Links:

Uber Plans Initial Price Range Of $44-$50 Per Share

Ex-Uber Exec Talks Company's Roots, Path To Profitability

Photo courtesy of Uber.

 

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Posted-In: CNBC Leslie Picker Shawn Cruz UberNews IPOs Tech Media Best of Benzinga

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