Uber debuted Friday on the New York Stock Exchange at $42 per share.
Uber Technologies Inc. lurched onto the public markets Friday, trading on the New York Stock Exchange at $42 per share, below its IPO price of $45. The stock was down more than 2% in the afternoon.
Uber priced its shares Thursday night toward the low end of its target range of $44 to $50 per share. That gave Uber a valuation of$75.46 billion at its IPO on a nondiluted basis, still well below the $120 billion it was reportedly seeking when news first broke it was preparing to go public. In the afternoon of its first day of trading, Uber’s market cap was around $73 billion.
Uber’s chief financial officer, Nelson Chai, said, “this was a tough day” on the market in an interview on CNBC after the stock began trading. Asked whether executives considered delaying the initial public offering as a result of the conditions, Chai said, “I don’t think that we’re smart enough to try to judge the market. … We weren’t optimizing to have the best opening price or the opening day. We’re really looking for how the stock continues to trade over time and that’s what we’re building for.”
Uber is now the second ride-hailing company to hit the U.S. public market, following Lyft’s debut in March. Both companies have been heavily scrutinized for continuing to post big losses, but many investors are also intrigued by the entrance of the new industry onto the public exchange. As Uber began its first day of trading, Lyft’s stock was down more than 3%.