Uber Shares Drop 7.5% to Record Worst IPO on NYSE

Uber shares dropped on Friday more than 7.5 percent at the end of the first trading session to record its lowest public offering price this year.

At the end of the session, the transportation network company’s share price plunged 7.6 percent to record $ 41.60 after scoring $ 41.06 earlier in the trading.

The US company announced earlier today that it set the price of the Initial Public Offering (IPO) at $ 45 per share.

Uber’s decline was the biggest lose in the history of IPO on the floor of the New York Stock Exchange (NYSE), following a mass protest against falling wages at the company’s headquarters in San Francisco last Wednesday.

Uber
Demonstrate in front of Uber’s headquarters in San Francisco

The company’s debut valuation of $76.5 billion was a significant drop from the estimated market value of $90-$120 billion. However, Uber managed to raise $ 8.1 billion from its investors.

In 2014, former CEO Travis Kalanick said the reason behind Uber’s increasing expenses is that customers are not only paying for a driver but, also for a company.

Over the last year, Uber losses reached $ 1.8 billion, down from $ 2.2 billion a year earlier. Meantime, revenues reported $ 11.3 billion with a 43 percent rise.

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