- Uber just had one of biggest tech initial public offerings of all time, even though its stock price fell on opening day.
- Its paperwork filed with the Securities and Exchange Commission gave us a glimpse at who its biggest shareholders are.
- These are the people that stand to gain the most if Uber’s entrance as a public company is well received by investors, and the shareprice remains high at the six month mark, when they will be free to sell their shares
Uber is now a public company. The paperwork it filed for its giant initial public offering (IPO) also reveals who the biggest shareholders are.
And with that knowledge — plus a little digging on Pitchbook, a database that tracks financial-deal details — we know which people and investors will score the biggest on Uber’s stock, should its share price rise in six months. That’s when these existing owners will be free to start selling their stakes on the public market. (They are subject to a 180-day lock up period.)
The opening day share price has been a disappointment. Uber’s board was clearly hoping that the company would command a high stock price, valuing the company at $120 billion or more. It agreed to bonus its CEO, Dara Khosrowshahi, $100 million or more in stock if the company hit that valuation and kept it for three months straight.
But Uber prices its initial shares at $45, a valuation of $75.5 billion. That’s still enormous and yet retail investors didn’t want to bite at that price. Shares opened $42 and have slowly inched back to the $43 and $44 range.
So, for the sake of calculating how much the stake of each of the major shareholders is worth, we are using a $43 share price.
SEE ALSO: The takedown of Travis Kalanick — The untold story of Uber’s infighting, backstabbing, and multimillion-dollar exit packages
SoftBank — $9.3 billion
SoftBank drove a hard bargain when it picked up a 16% stake in Uber, buying shares from other stockholders at about $33 a share.
SoftBank’s billionaire CEO Masayoshi Son capitalized on Uber’s boardroom troubles a couple of years ago and the infighting on the board to grab a big chunk of the company for his investment company, the SoftBank Vision Fund, at what he hopes will prove to be a bargain price.
SoftBank Vision Fund, through an entity called SB Cayman 2 Ltd., owns nearly 217 million shares, or 13% of the company. It sold nearly 5.5 million shares in the IPO, presumably at $45 for more than $245 million.
Its remaining stake, at $43 a share is worth $9.3 billion.
Benchmark Capital — $6.2 billion
The A-list venture capital firm Benchmark Capital, under partner Bill Gurley, led Uber’s $11 million series A funding round back in 2011, and invested in later rounds. The $12 million Benchmark invested over time became valued at as high as $7 billion, records from its lawsuits with Uber revealed.
Benchmark sold about 14.5% of its stake to SoftBank when SoftBank bought in, but it also held on to a considerable stake. It still owns more than 144 million shares, or 8% of the company.
As Business Insider previously reported, Gurley was one cofounder Travis Kalanick’s earliest advisers and then became one of the ringleaders who ousted Kalanick.
After that, Gurley resigned from the board, and Matt Cohler took his place. Cohler remains on the board today.
Benchmark sold nearly 5.8 million shares at the IPO. At $45, that would have brought in nearly $259 million. At $43 a share, its remaining stake is worth $6.2 billion.
Travis Kalanick – $5 billion
Travis Kalanick’s rise and fall as Uber’s founder and CEO has been well documented. He left the CEO job in summer 2017 (and launched a new company) and sold off a sizeable chunk of his stake to Softbank at that time. That sale put $1.4 billion in his pocket, and it represented only 30% of his stake.
He’s still the largest individual Uber shareholder. He owns nearly 114 million shares, or about 7% of the company. He sold $3.7 million shares in the IPO presumably at the $45 share price, which, at that price, would have brought in $168 million.
At $43 a share, his remaining stake is worth more than $5 billion.
See the rest of the story at Business Insider