Uber Technologies Inc. fell in its trading debut, leaving the company's market value below its last private funding round.
Since 2000, only 18 companies that are valued at over $1 billion opened below their IPO price on the American exchanges. The stock closed at $41.57, and Uber joined a small group of major IPOs that ended their first day down.
Meanwhile, scores of Uber drivers say they have been mistreated by the company as they work long hours and wear out their cars picking up passengers as they struggle to make ends meet.
"It's a great moment for the company and all the employees who have been working so hard to get here", Khosrowshahi said in an interview with The Associated Press.
The company had been expecting a valuation as high as $120 billion as it prepared to go public, but in its most recent private funding round, investors had valued it at just $76 billion after posting a $3 billion loss past year. "We're certainly not measuring our success over a day, it really is over the years", Khosrowshahi said.
Uber Technologies Inc's shares fell almost 9% in their New York Stock Exchange debut on Friday, marking a rocky start for one of the most high-profile US companies to go public since Facebook Inc seven years ago.
Uber became a publicly traded company today with its initial public offering of stock valued at $45 a share on the New York Stock Exchange, but quickly lost value as it started selling at $42 a share nearly immediately. Although the ride-share app raised $8 billion, experts were disappointed by how low the company priced each share. The trading debut will be closely watched by the cavalcade of other tech startups that are expected to go public this year, including Slack Technologies Inc., Postmates Inc., Peloton Interactive Inc. and WeWork Cos.
The company weathered controversies including the unearthing of a culture of sexism and bullying at Uber to a U.S. Department of Justice federal investigation, which culminated in the resignation of CEO Travis Kalanick.
Uber is by no means the only tech company with a "We do bad things" fund: Facebook recently revealed that it anticipates paying $3 to $5 billion in fines to the FTC, and its chief competitor Lyft noted in a prospectus of its own that it is "currently involved in a number of [lawsuits]" from drivers similarly challenging their contractor status. The San Francisco company already has lost about $9 billion since its inception in 2009 and acknowledges it could still be years before it turns a profit.
One of the most most valuable companies ever to go public, Uber listed its IPO price on the low end of an expected range of $44 to $50. It adjusted losses of $1.8 billion, an improvement over losses of $2.6 billion in 2017, according to its IPO filing.
Shares are trading under the ticker UBER.
The bank led the listing with Goldman Sachs Group Inc. and Bank of America Corp.