Preparing For IPO, Uber Valued At $120 billion, More Than Ford, General Motors, Fiat Chrysler Combined

$120 billion – this is how much the ride-hailing company has been valued at as it plans an initial public offering (IPO) on the New York Stock Exchange (NYSE) which could happen as early as next year, The Wall Street Journal has reported.

The reports adds that Uber’s IPO valuation is double of what it projected when it did its second round of fundraising two months ago and more than the combined market cap of three automobile manufacturing behemoths General Motors, Ford Motor Co and Fiat Chrysler Automobiles.

The biggest beneficiary of the valuation will be the Saudi Arabian royal government which through direct investment and sovereign wealth fund pumped in $3.5 billion in what was one of the largest investments in a private technology company ever.

Saudis are estimated to own about 14 per cent of Uber through direct investments and via the sovereign wealth fund’s holdings in Japan’s Softbank, which is Uber’s single biggest shareholder.

If Uber is valued at $120 billion as per estimates, Saudi Arabia’s royal family will make a whopping $16 billion.

The good news for Uber comes in a year where the company was hit by many scandals including charges of toxic workplace culture to the theft of trade secrets from rival Alphabet Inc. and exit of it’s co-founder Travis Kalanick.

Earlier in August this year, New York became the first major US city to approve a law to cap ride-hail car licences and set minimum pay conditions for drivers. London may also follow suit making the regulatory regime increasing difficult for Uber.