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Why Uber May Go Conservative in Pricing Shares for the IPO

Uber Technologies is planning to start marketing shares in a price range of about $44 to $50 each in its initial public offering, which could value the ride-hailing company at $80 billion to $90 billion, according to people familiar with the matter.

The San Francisco-based company could aim to raise about $8 billion to $10 billion in the listing, the people said, who asked not to be identified as the matter isn’t public. The final details of the price range may still change, the people said.

At the lower end of the range the price would value Uber just above its last private funding round, in which Toyota Motor Corp. invested at a valuation of about $76 billion. Uber is taking a conservative approach to its valuation and could later raise the price depending on investor demand, the people said.

Last year, bankers jockeying to lead the offering told Uber it could be valued at as much as $120 billion in an IPO.

Uber is expected to set the terms for its IPO as soon as Friday before heading out on a road show to market the stock to potential investors, the people said.

A spokesman for Uber declined to comment.