October 16, 2018 / 11:58 AM / in a month

Uber IPO proposals value company at $120 billion: WSJ

(Reuters) - Ride-hailing company Uber Technologies Inc [UBER.UL] could be valued at $120 billion, when it finally goes public next year according to proposals made by U.S. banks bidding to run the offering, the Wall Street Journal reported on Tuesday.

FILE PHOTO: Uber's logo is displayed on a mobile phone in London, Britain, September 14, 2018. REUTERS/Hannah Mckay/File Photo

The proposed valuation of the company is about $50 billion more than the company’s most recent valuation, setting the stage for what would be one of the biggest listings ever.

Reuters reported in late September that Goldman Sachs and Morgan Stanley were in pole position to secure top roles in Uber IPO.

Uber and smaller rival Lyft’s initial public offerings, both expected in 2019, will test investor tolerance for money losing technology unicorns.

Dara Khosrowshahi, who took over as chief executive last year, said in September that Uber was on track for a 2019 IPO, adding that he was not concerned if Lyft went public first because he expected enough demand for both companies.

Both companies have taken hits to their bottom lines in order to attract drivers and enter new markets, although they have made strides in recent years in narrowing their losses.

Uber has been seeking new avenues of growth, including food delivery services, even as it battles intense competition in its core business of ride hailing.

Goldman Sachs and Morgan Stanley last month delivered the valuation proposals to Uber, the WSJ report said.

The company hired Nelson Chai as its chief financial officer in August, filling a long-standing vacancy.

Uber declined to comment.

Reporting by Munsif Vengattil and Akanksha Rana in Bengaluru; Editing by Arun Koyyur and Saumyadeb Chakrabarty

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