Why did bankers including Morgan Stanley’s suggest a $120-billion valuation last year that Uber couldn’t deliver?
Uber Technologies Inc. CEO Dara Khosrowshahi, third from left, and guests ring the opening bell at the New York Stock Exchange in New York on Friday.
Uber shares climbed 8% to $39.96 on Tuesday, still leaving them more than $5 below the $45 IPO price. Still, people with knowledge of the situation have said the order book was at least three times oversubscribed. Morgan Stanley, which is slated for about $41 million in fees from the deal, led the offering with Goldman Sachs Group Inc. and Bank of America Corp., which are sharing a total of about $32 million in fees.One investor at a multibillion-dollar shop recalled other misgivings heading into the sale.
Morgan Stanley has built a reputation for wresting megawatt technology IPOs from major rivals including Goldman Sachs Group Inc., which was listed second on Uber’s offering documents. Some credit the tenacity — and others the showmanship — of Morgan Stanley tech banker Michael Grimes and his equity capital markets counterpart Colin Stewart. Both are veterans of the industry, able to reassure clients, we’ve been here before.
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