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Uber Stock Exchange Listing Flops on the first day



Uber's transition to a listed company is a blast, but it's not the first to know, not even this week.

However, it is unusual for a company with such a high reputation level to default to the gate.

And traders scratched their heads on Friday and tried to remember a high-profile IPO like Uber, which went south on the first day price of 45 USD (68.24 NZD).

The closing bell on Friday saw a price of $ 41.57, down 7.6 percent.

Uber raised nearly $ 25 billion ($ 37.91

NZD) in pre-IPO financing in 23 rounds.

Matt Kennedy, a senior IPO market strategist at Renaissance Capital, says that over the past five years, only 10 percent of venture capital backed US technology companies have closed their first trading day below their IPO price.

Facebook debuted in 2012 and after technical difficulties ies delayed its trading start and ended its first day just 23 cents above the IPO price of $ 38 (NZ $ 57.63).

  Uber has become a listed company. Photo / Getty Images.
Uber has become a listed company. Photo / Getty Images.

Kennedy points out that Uber does not make profits unlike Facebook.

Following a drop of just under 9 percent on Friday, Uber Technologies Inc. shares fell less than 1 percent.

This is very unusual, especially for a high profile technology company like Uber. During the IPO at the end of March, the shares of competitor Lyft rose at one point by 21 percent. But the company has had a tough journey ever since and has dropped almost 30 percent since its debut.

Some analysts pointed to the volatile market conditions in recent weeks and also on Friday. All major US markets are in decline after falling 3 percent or more this week.

The two Uber co-founders Travis Kalanick and Garrett Camp were present at the opening exchange, but remained on the podium during the ringing

  Dara Khosrowshahi (middle), CEO of Uber, rings the opening bell on the New together with other employees York Stock Exchange. Photo / Getty Images.
Dara Khosrowshahi (center), CEO of Uber, rings the opening bell on the New York Stock Exchange with other employees. Photo / Getty Images.

Tony West, Uber's chief legal officer, who has been working on the repair of Uber's image in settling litigation around the globe, shot smart-phone video off the floor while waiting for the first trading session on the New York Stock Exchange led by Austin Geidt, one of Uber's earliest employees.

She joined the company in 2010 and is now head of strategy for the Uber Advanced Technologies Group, which works on autonomous vehicles. She and CEO Dara Khosrowshahi were accompanied by Uber drivers from around the world and other Uber executives on the NYSE.

– News.com.au


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