Uber has reportedly picked Morgan Stanley to lead its upcoming initial public offering, news of which became public last week when the ride-hailing giant filed confidentially with the U.S. Securities and Exchange Commission for an IPO expected in the first quarter of 2019.
Uber’s choice, first reported by Bloomberg, comes after a months-long bidding war, of sorts, between Morgan Stanley and Goldman Sachs. The pair of investment banks presented IPO plans to Uber this fall, in hopes of landing the top underwriting spot in what will be one of the largest stock market debuts to date. Morgan Stanley, having won the battle, can expect to receive a large portion of the fees that come with an IPO.
We’ve reached out to Uber and Morgan Stanley for comment.
Michael Grimes, managing director of global technology for Morgan Stanley, speaks at the TechCrunch Disrupt conference on Tuesday, Sept. 28, 2010
Uber’s pick isn’t too surprising; rumors pointing to Morgan Stanley have floated around the tech ecosystem for months. Morgan Stanley’s head of technology investment banking, Michael Grimes, the lead underwriter on Facebook’s initial public offering, resorted to gimmicks to ensure his spot in Uber’s IPO. According to The Wall Street Journal, Grimes moonlighted as an Uber driver for years to demonstrate his loyalty.
Both Morgan Stanley and Goldman Sachs are investors in Uber. Morgan Stanley participated in Uber’s Series G funding in 2016 and Goldman Sachs has been a backer for years, investing in the company as early as 2011.
Uber was most recently valued at $72 billion and is expected to garner a valuation as high as $120 billion upon its stock market debut. Lyft, its key competitor in the U.S., also recently filed to go public. It has picked JPMorgan Chase & Co. as the lead underwriter of its offering, per reports, which is also expected as early as Q1 2019. People familiar with the company’s IPO plans said its valuation will exceed the $15.1 billion it was valued at earlier this year.
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