- Uber just had one of biggest tech initial public offerings of all time, even though its stock price fell on opening day.
- Its paperwork filed with the Securities and Exchange Commission gave us a glimpse at who its biggest shareholders are.
- These are the people that stand to gain the most if Uber’s entrance as a public company is well received by investors, and the shareprice remains high at the six month mark, when they will be free to sell their shares
Uber is now a public company. The paperwork it filed for its giant initial public offering (IPO) also reveals who the biggest shareholders are.
And with that knowledge – plus a little digging on Pitchbook, a database that tracks financial-deal details – we know which people and investors will score the biggest on Uber’s stock, should its share price rise in six months. That’s when these existing owners will be free to start selling their stakes on the public market. (They are subject to a 180-day lock up period.)
The opening day share price has been a disappointment. Uber’s board was clearly hoping that the company would command a high stock price, valuing the company at $US120 billion or more. It agreed to bonus its CEO, Dara Khosrowshahi, $US100 million or more in stock if the company hit that valuation and kept it for three months straight.
But Uber prices its initial shares at $US45, a valuation of $US75.5 billion. That’s still enormous and yet retail investors didn’t want to bite at that price. Shares opened $US42 and have slowly inched back to the $US43 and $US44 range.
So, for the sake of calculating how much the stake of each of the major shareholders is worth, we are using a $US43 share price.
SoftBank — $US9.3 billion
SoftBank drove a hard bargain when it picked up a 16% stake in Uber, buying shares from other stockholders at about $US33 a share.
SoftBank’s billionaire CEO Masayoshi Son capitalised on Uber’s boardroom troubles a couple of years ago and the infighting on the board to grab a big chunk of the company for his investment company, the SoftBank Vision Fund, at what he hopes will prove to be a bargain price.
SoftBank Vision Fund, through an entity called SB Cayman 2 Ltd., owns nearly 217 million shares, or 13% of the company. It sold nearly 5.5 million shares in the IPO, presumably at $US45 for more than $US245 million.
Its remaining stake, at $US43 a share is worth $US9.3 billion.
Benchmark Capital — $US6.2 billion
The A-list venture capital firm Benchmark Capital, under partner Bill Gurley, led Uber’s $US11 million series A funding round back in 2011, and invested in later rounds. The $US12 million Benchmark invested over time became valued at as high as $US7 billion, records from its lawsuits with Uber revealed.
Benchmark sold about 14.5% of its stake to SoftBank when SoftBank bought in, but it also held on to a considerable stake. It still owns more than 144 million shares, or 8% of the company.
As Business Insider previously reported, Gurley was one cofounder Travis Kalanick’s earliest advisers and then became one of the ringleaders who ousted Kalanick.
After that, Gurley resigned from the board, and Matt Cohler took his place. Cohler remains on the board today.
Benchmark sold nearly 5.8 million shares at the IPO. At $US45, that would have brought in nearly $US259 million. At $US43 a share, its remaining stake is worth $US6.2 billion.
Travis Kalanick – $US5 billion
Travis Kalanick’s rise and fall as Uber’s founder and CEO has been well documented. He left the CEO job in summer 2017 (and launched a new company) and sold off a sizeable chunk of his stake to Softbank at that time. That sale put $US1.4 billion in his pocket, and it represented only 30% of his stake.
He’s still the largest individual Uber shareholder. He owns nearly 114 million shares, or about 7% of the company. He sold $US3.7 million shares in the IPO presumably at the $US45 share price, which, at that price, would have brought in $US168 million.
At $US43 a share, his remaining stake is worth more than $US5 billion.
Garrett Camp — $US3.5 billion
Garrett Camp is Uber’s original founder. He created an app for hailing black-car limo services that his buddy Kalanick loved. Kalanick invested in the fledgling company, joined the startup, and later became its second CEO.
Camp, who is also known for the other tech company he founded, StumbleUpon, has been on the board since its earliest beginnings, sometimes as chairman and other times as just a board member.
Camp is the second-largest individual shareholder. He owns over 78 million shares, or about 5% of the company. He sold just over 3 million shares in this IPO, presumably at $US45 a share bringing in over $US140 million.
At $US43 per share his remaining stake is worth nearly $US3.5 billion.
Saudi Arabia’s Public Investment Fund — $US3.1 billion
The Saudi Arabia Public Investment Fund invested $US3.5 billion in Uber in 2016, and its managing director, Yasir Al Rumayyan, sits on Uber’s board.
The fund is chaired by Crown Prince Mohammed bin Salman, the Saudi royal who’s been accused in the killing of Washington Post journalist Jamal Khashoggi. The Public Investment Fund predates the prince’s tenure. It was established in the 1970s, but it has been a driving force behind the country’s ambitions to diversify the economy away from oil.
The Saudi Arabia fund owns nearly 73 million shares of Uber, or 4%. It didn’t sell any shares in the IPO. At $US43 a share, its stake is worth more than $US3.1 billion.
Ryan Graves — $US1.4 billion
Ryan Graves joined Uber as employee No. 1 by answering a tweet. He was Uber’s first CEO, though Kalanick quickly replaced him and took the CEO job.
Graves remains on the board. He may have sold off a chunk of his shares during some of Uber’s secondary sales in recent years.
Graves owns nearly 32 million shares, or just under 2% of the company. He sold 1.3 million shares in the IPO. At $US45 a share that would have brough in over $US59 million. His remaining stake, at $US43 a share, is worth nearly $US1.4 billion.
Thuan Pham — $US231 million
Thuan Pham is Uber’s chief technology officer. He was hired by Kalanick, poached from VMware.
Pham was a Vietnam refugee who came to the US under political asylum after a rough childhood in refugee camps.
Pham was running engineering when Susan Fowler published her infamous tell-all about her experiences with sexism and sexual harassment that eventually undid Kalanick’s reign. But investigations found that he was not in the know, and he’s remained a key figure at the company under both CEOs.
He owns nearly 5.4 million shares and didn’t sell any in the IPO. At $US43, those shares are worth more than $US231 million.
Dara Khosrowshahi — $US8.4 million
Dara Khosrowshahi is Uber’s CEO, hired to navigate the company out of its well-publicised cultural problems and into an IPO.
He’s been on the job for about two years now, and one of his major directives was to take the company public. The board wanted him to reel in a valuation of $US120 billion and he’s eligible for1.75 million in stock options if he can hit and maintain that target for three months.
But this IPO didn’t come close. His current stake is 196,000 shares, Uber says. At $US43 a share that’s worth $US8.4 million.
Ron Sugar — $US5.6 million
Ron Sugar is Uber’s chairman of the board, a post he has held since July 2018. He’s the former CEO of aerospace defence contractor giant Northrop Grumman.
Sugar owns 131,000 shares and didn’t sell any in the IPO. His stake is worth over $US5.6 million.
John Thain — $US5.6 million
John Thain has been on Uber’s board of directors since 2017. He’s is the former CEO of CIT Group and was the last CEO of Merrill Lynch before its merger with Bank of America.
He owns 130,000 shares and didn’t sell any in the IPO. His stake is worth nearly $US5.6 million, at $US43 a share.
Barney Harford — $US4.5 million
Barney Harford, Uber’s chief operating officer, hired by Khosrowshahi, owns 105,211 shares, based on the number of his restricted share units due to convert to shares by the end of May.
Things got dicey for Harford in July when he made some insensitive comments about race, not a good look for Uber as it struggled to rebuild its image. But Khosrowshahi defended him and he weathered the storm.
He didn’t sell any shares in the IPO. At $US43, his stake is worth just over $US4.5 million.
More than 160 others
Uber raised $US20 billion in its years as a private company and had 162 investors, according to Pitchbook. There are dozens of other significant investors who have stakes less than 5% of the company (the threshold at which public disclosure is required).
Some of them include:
General Atlantic, the private-equity firm that was part of Uber’s $US1.6 billion series E funding round in 2015.
The private-equity firm TPG Growth started buying into Uber in 2013 when Uber raised $US258 million and was valued at just under $US4 billion. It bought more shares than that, and partner David Trujillo is on the board.
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