UBER began trading as a public company on May 10.
But what does that mean and how much are the shares? Here’s what we know.
AP:Associated Press Uber board member Ryan Graves, right, rings a ceremonial bell as the company’s stock opens for trading during its initial public offering at the New York Stock Exchange, Friday, May 10
Did Uber go public?
Uber began trading at the New York Stock Exchange on Friday, May 10.
It traded at £32 ($42) a share, which is nearly seven percent below its initial public offering price, the Associate Press reported.
The ride-hailing giant sold shares in the Initial Public Offering (IPO) at £34 ($45) each, raising £6.23billion ($8.1billion) and giving the company a valuation of £6.31billion ($82 billion).
Shares began trading about two-and-a-half-hours after the markets opened today, with investors already feeling jittery over an escalating trade dispute with China.
All major indexes declined at least one per cent today after the two countries failed to reach a deal before Friday’s tariff deadline.
What is Uber?
Uber is a transport network company.
Their services range from hailing a car, ridesharing, food delivery and in some country a bicycle-sharing system.
The company operates in 785 cities around the the world.
What does IPO mean?
IPO stands for initial public offering, which is the very first sale of stock issued by a company to the public.
Companies decide to go public because it can raise a lot of capital in order for the firm to expand and grow.
If a company stays private the only options to they have to raise capital is to borrow, find additional private investors, or by being acquired by another company.
Uber shares dip below $45 starting price after taxi company is floated at the New York Stock Exchange
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What has the CEO of Uber said?
CEO Dara Khosrowshahi told American broadcaster CNBC that Uber investors are in it for the long ride.
He said: “Today is only one day. I want this day to go great, but it’s about what we build in the next three to five years.
“And I feel plenty of pressure to build over that time frame.”