Uber Technologies Inc’s conservative initial public offering could not keep its shares from sinking in their trading debut on Friday.
Uber considered going public for at least four years. Yet the ride-hailing company picked a week for its IPO plagued by market turbulence fueled by U.S.-China trade worries.
Uber was the biggest of a group of Silicon Valley startups that have spent years raising money in private rounds at record prices. Many of these companies are now looking to follow with their own IPO.
Uber’s shares ended the day down 7.6% at $41.57, even as the S&P 500 reversed losses to end in positive territory. Only about a fifth of IPOs have ended their first day of trading in the red in the last two years, according to Dealogic data.
Uber priced its IPO on Thursday at the low end of its targeted range.
Uber had already lowered its valuation expectations twice in the last two months to address investor concerns over its mounting losses.
