Loup Ventures‘ Gene Munster isn’t buying into Uber’s initial public offering.
Noted tech investor Gene Munster isn’t buying into Uber’s initial public offering.
In fact, when shares open on the public market on Friday, he expects them to trade down throughout the day.
Uber priced its IPO at $45 per share Thursday, which values the company at about $75.46 billion. The company is offering 180 million shares of its common stock, with an option for underwriters to buy an additional 27 million. If all options and restricted stock units are exercised, Uber’s fully diluted valuation would jump to $82.35 billion.
„I was surprised at the pricing,“ Munster said Thursday on CNBC’s „Fast Money.“
Namely, he’s looking out to 2020 and comparing Uber with its competitor Lyft, which went public in March.
„The pricing at this $83 billion is going to be about 40% higher on a revenue multiple versus where Lyft is trading on their 2020 numbers.
