The financial world has been in a fever of anticipation for months over one of the largest stock exchange listings in recent memory, and now the time has come.
US-based transport networking service Uber is set to make its debut on the New York Stock Exchange this week.
The company, which seeks to revolutionise mobility and transport, is aiming at the largest flotation since Alibaba’s in 2014, but by contrast with the Chinese online giant, Uber has posted only large losses to date.
Investors face the question: Can the hyped California company make a profit? Uber boss Dara Khosrowshahi has not helped to boost hopes.
“If they want a predictably profitable company, go buy a bank.
Do not come to us. It’s simple,” he said in December at a Stanford Business School event. Khosrowshahi is looking to the long term, and even in its prospectus for potential shareholders, Uber cautions that it might never make a profit.
But one thing is clear. The Uber initial public offering (IPO) will be on a huge scale, with the company aiming at a total valuation of up to $90bn.
Earlier estimates ran even higher.
The share price range has been set initially at between $44 and $50, but this could change depending on demand. Uber aims to place 180mn shares, resulting in proceeds of between $7.9bn and $9.0bn on current estimates.
Talk in the markets is that Uber will announce the final issue price on Thursday.
The shares will then be traded for the first time on Friday under the ticker symbol “UBER.” The roadshows were in full swing right up to the last, with Uber trumpeting its virtues to investors.
In the meantime, the investment banks underwriting the IPO have suggested a valuation of up to $120bn, according to US media reports. Uber’s growth is the main drawcard for investors. Last year, revenues rose 42% year-on-year to $11.3bn. Losses, by contrast, came in at almost $1.9bn, after special items resulting from the sale of business components.
According to the Wall Street Journal, Uber’s losses rose further in the first quarter of this year.
Over the 12 months to the end of March, losses of $3.7bn were apparently incurred, a record for a company in the year ahead of its IPO.
Over the past 10 years, Uber has secured almost $20bn from investors with the aim of going for aggressive global growth.
At the same time, the company has faced repeated conflict with government authorities and the traditional taxi sector.
Co-founder and chief executive Chef Travis Kalanick had to resign after a series of scandals.
His successor, Khosrowshahi, has brought stability to the company and striven to give Uber a friendlier face following allegations of discrimination, sexism, a macho culture and numerous infringements of the rules. 
To date, Uber has dominated the ride-sharing market via smartphone apps, but Khosrowshahi aims to grow the company into an all-round service provider for all possible modes of mobility. Uber already has food delivery services, freight intermediation for truck drivers, and e-bike and scooter sharing.
The long-term business plan banks heavily on technological advances, with autonomous cars — doing away with the cost of a driver — seen as the key to profitability. Uber’s smaller rival Lyft listed in March.
Currently active only in the US and Canada, Lyft pushed its issue price to $72s, and the IPO was initially seen as a success, but the price has come under pressure in recent weeks. Analysts suspect that this fact may be behind Uber’s more cautious initial target after the two competitors conducted a race over recent months to be the first to list.