The Uber Stock Exchange flop the first day

The transition from Uber to becoming a publicly traded company is a shock, but it is not the first to experience it, not even this week.

However, it is rare that a company with such notoriety loses its footing.

And the traders scratched their heads on Friday, trying to remember a high-level IPO like Uber heading south on the first day.

Uber shares began trading at approximately $ 2 (US $ 3.03) against its initial offering price of $ 45 ($ 68.24).

Friday, at closing, the price was $ 41.57, a drop of 7.6%.

Uber has raised nearly 25 billion USD (37.91 USD) in 23 rounds of financing before becoming public.

Matt Kennedy, senior strategist of Renaissance Capital's IPO market, said that in the past five years, only 10 percent of venture capital US technology companies had completed their first day of trading under the umbrella of price of their introduction.

Facebook made its debut in 2012 and, after technical difficulties having delayed its start of trading, it ended its first day just 23 cents above its IPO price of 38 USD (NZD 57.63) ).

Kennedy points out that, unlike Facebook, Uber has not generated profits.

After falling nearly 9% on Friday, Uber Technologies Inc.'s shares lost less than 1%.

This is very unusual, especially for a high-tech company like Uber. The shares of his rival, Lyft, jumped 21% during its IPO at the end of March. But this business has struggled since, it has fallen by nearly 30% since its inception.

Some analysts have pointed to market volatility in recent weeks, as well as Friday. All major US markets are in decline, having dropped 3% or more this week.

The two founders of Uber, Travis Kalanick and Garrett Camp, were present at the exchange for the opening but were absent from the podium during the ringing of the stamp.

Tony West, Uber's legal manager, who was busy repairing Uber's image while filing lawsuits around the world, filmed videos on smartphone from the ground up. waiting for the first exchange.

The opening bell of the New York Stock Exchange was sounded by Austin Geidt, one of Uber's earliest employees.

She joined the company in 2010 and is now responsible for the strategy of Uber's Advanced Technology Group, which specializes in autonomous vehicles. She and her executive director, Dara Khosrowshahi, have been joined by Uber pilots from around the world and other Uber executives at the NYSE.

– News.com.au