The IPO market continues to be one of the main headlines this year as more and more brand names are launching along with some dark horse names that have managed to steal attention, even if only briefly.
One of those names last week was Beyond Meat (NASDAQ: BYND) which dominated the headlines thanks to its 160% first day gain. Investors flocked to the previously unheard of name, jumping all in on the vegan meat company pushing it's valuation to more than $20 billion. This put it ahead of current valuations of Lyft (NASDAQ: LYFT) and Pinterest (NASDAQ: PINS). At that point investors had paid just about 40 times sales which is a record for a food company.
That news could become old news this week as the mother of all IPO's which has been teased for years is coming public. Uber (NYSE: UBER) is expected to launch this week and is hoping to raise $8.5 billion. The popular ride sharing company has reduced their valuation following the results of the Lyft IPO, but this could work in their favor. This will be the largest offering since Facebook (NYSE: FB) in terms of valuation and deal size. 180 million shares will be offered at a range of $44 -$50.
This will be another test for the silicon valley companies that, while they are growing rapidly, have not made nor do they have any sign of making a profit. Uber lost $2.3 billion last year with over $11 billion in total revenue and analysts currently see no quick path to turning a profit. Despite this, the offering is currently over subscribed and is expected to price above the initial range.