Uber Cools IPO Price as NYSE Opening Bell Dumps Ousted CEO Kalanick
Former Uber CEO Travis Kalanick won't be ringing the opening bell at the NYSE. | Source: REUTERS/Danish Siddiqui/File Photo
By CCN.com: Ahead of its historic IPO, Uber fixed the price at $45 as it faces increased concerns that investors will steer clear of it.
When it filed its IPO papers last month, it set the price between $44 and $50 per share.
Skeptics were waving warning flags about the IPO, telling investors to steer clear of it. However, Uber execs found time to squabble over who should be on the New York Stock Exchange balcony to ring the opening bell Friday.
That seems odd, if not crazy, but considering it’s Uber, it’s nearly expected.
Let Me On That Balcony!
NYSE tradition calls for the execs of the company going public to ring the opening bell on the first day of trading. Ousted CEO Travis Kalanick approached his replacement Dara Khosrowshah about joining the team, and was reportedly denied.
He’ll sit courtside along with his father and fellow co-founders Ryan Graves and Garrett Camp. Kalanick is a member of Uber’s board.
Some took the squabble as an opportunity to poke fun at Kalanick.
Without Kalanick and his co-founders coming up with the Uber idea, there would be no bell ringing. On that same note, had it not been for some very fool moves he made while at the helm, he’d be on the balcony as CEO.
He was forced to resign in 2017 amid allegations that Uber’s workplace was fraught with problems that promoted a culture where sexual harassment and gender discrimination went unaddressed.
Kalanick still owns 8% of Uber, according to Fox Business. After the IPO, he stands to make billions of dollars.
Losses, Not Profits Is Uber’s Mantra
Path to profitability is non-existent, said Bitcoin bull Brian Kelly on CNBC’s Fast Money.
Timothy Seymour, the CIO of Seymour Asset Management, discussed Uber’s losses and its valuation on the show.
“Uber, going into this IPO, has lost $3.7 billion in its 12 month calendar, which is the largest loss going into an IPO ever. For a company that’s raised $20 billion in debt and equity – largest ever.”
Seymour also pointed to some rumors that could give potential Uber IPO investors pause.
“Insiders could be engaging in hedges, short selling, or some types of transactions that will allow them to get liquidity before the lockup date. So we’re talking about a massive amount of stock; we’re talking about an IPO that at one point was going to be $100 billion that is now pricing around $82 billion. You’ve got insiders who’ve been watching the bottom drop out. And that should worry investors.”
