Uber’s First Investors Could Make About $1.3B From IPO

The earliest investors in ride-hailing company Uber are looking to sell about $1.3 billion in shares during the company’s initial public offering (IPO) next month, according to a report by Bloomberg.

Alphabet and Saudi Arabia aren’t planning on selling any stock, but venture capital firm Benchmark – the company’s biggest seller – is offering 5.7 million shares, according to a regulatory filing released on Friday (April 26). Those shares will get around $270 million in the listing’s middle range of about $44 to $50. SoftBank is offering 5.5 million shares and the company’s founders, Travis Kalanick and Garrett Camp, plan to sell shares worth $176 million and $147 million, respectively.

After the offering, selling shareholders will still have control of about $36 billion in stock. Uber wants to offer 180 million shares in an effort to raise about $9 billion, which would give the company a market value in the neighborhood of $84 billion.

Other investors selling shares include Lowercase Capital, First Round Capital and private equity outfit TPG. One of the company’s earliest employees, Oscar Salazar, has a $250 million stake and wants to sell $10 million in shares. The company is expected to make its debut on the stock exchange on May 10.

Earlier this week, Bloomberg also reported that McDonald’s was looking to make more money for its franchisees by renegotiating the terms of its exclusive delivery deal with Uber Eats. The two companies recently met to discuss lowering the fees paid to the delivery giant. The terms will include “significantly reduced commission rates for all U.S. restaurants,” with the eventual ending of the deal that currently only allows for Uber Eats deliveries. The move would allow for other companies like DoorDash or Grubhub to potentially deliver for the fast food company. The news arrives as Uber prepares its IPO, while it touts the McDonald’s partnership as a prominent part of its business.