May 10, 2019
Uber shares struggle to lift on day one like other prominent IPOs
Potentially as disappointing as a driver cancelling on you when you're rushing to the airport, Uber bucked a trend among prominent initial public offerings and traded below its float price as it made its Wall Street debut. Without the customary moving car icon to provide any indication, investors waited more than two hours after Wall Street's opening bell for Uber shares to make their first trade, $3 - or 6.7 per cent - below its offer price in a move that could prompt a reassessment of the IPO pipeline for other companies this year. In a heavily-hyped float that raised $8.1bn, making it the biggest IPO for a US tech company since Facebook in 2012, the company priced its shares at $45 yesterday, at the lower end of its valuation range. In a Financial Times analysis of our mostly tech-heavy list of prominent US IPOs, Facebook and Amazon stick out as two companies that were trading below their float prices five sessions after their first trade. Aside from pure share price gains, another potential way to look at IPO performance is how many trading days a company has closed above its offer price.
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