Uber shares opened at $42 on Friday, below their IPO price of $45, in a dismal performance for the ride-hailing company.
Uber sold 180m shares at $45 a piece by Thursday, raising $8.1bn in fresh capital and valuing the company at $82.2bn on a fully diluted basis. At the opening price, Uber’s market capitalization was $70.4bn.
Thursday’s pricing came in at the low end of its indicated range of $44 to $50 and fell below the $48.77 price at which Uber sold stock to private investors three years ago. Morgan Stanley, Goldman Sachs and Bank of America were lead underwriters.
Officials at Citadel Securities, the designated market maker, said sentiment was likely being hampered by the broader sell-off in equities. The S&P 500 index was down 1.3 percent after the first two hours of trading on Friday morning.
“We thought that at this price it reflected the environment,” Dara Khosrowshahi, Uber’s chief executive, said in an interview with CNBC on Friday morning before the market opened.
“We wanted to put our stock with a group of funds that we know are not going to hold for the next week but for the next year or more,” he added, pointing to the selling pressure on its rival Lyft.
Uber IPO was the biggest tech offering since Facebook in 2012, and the tenth biggest overall in US listing by proceeds raised, according to Dealogic.
Uber’s first intern, Austin Geidt, who is now an executive, rang the bell on Friday morning from the NYSE’s balcony, surrounded other companies executives, early employees, and the drivers.