Uber on track to lose NZ$6 billion this year

Ride-hailing company Uber Technologies has unveiled terms for its initial public offering, telling investors it would seek to sell as much as US$10.35 billion in stock at a valuation of up to US$91.5b.

In a regulatory filing on Friday, Uber set a target price range of US$44-$50 per share for its IPO. The company will sell 180 million shares in the offering, with a further 27 million sold by insiders.

Uber also said PayPal had agreed to purchase US$500 million of stock in a private placement at the price the IPO eventually settles at.

In the filing, Uber also reported a net loss attributable to the company for the first quarter of 2019 of around US$1b and revenues of roughly US$3b.

The updated public filing comes as Uber gears up to begin its investor roadshow, in which management will spend the next 10 days pitching Uber to public markets investors.

Uber will face a host of questions from investors, including when it may turn a profit, how it will navigate the transition to autonomous vehicles and whether its business model can support higher driver costs from minimum wage rules.

The valuation that Uber is seeking in its IPO is less than the US$120b that investment bankers told Uber last year it could fetch, and closer to the $76b valuation it attained in its last private fundraising round last year.

Uber's moderation of valuation expectations reflects the poor stock performance of its smaller rival Lyft Inc following its IPO last month. Lyft shares ended trading on Thursday down more than 20 percent from their IPO price amid investor skepticism over its path to profitability.