Online payments company PayPal plans to invest $500 million in Uber Technologies as the ride-hailing firm unveiled terms for its initial public offering on Friday, Refinitiv IFR reported.
PayPal will invest in Uber through a concurrent private placement at the IPO price, IFR reported on Thursday, citing sources.
A financial services component is important to Uber as it works to expand into a “superapp” of logistics and transportation services.
Superapps are applications where customers go for a range of services, such as transportation, shopping and payments. Such companies can be much more lucrative than those that offer just one core business or service.
Uber set a price range of $44 to $50 per share for its IPO Friday in an updated filing. It would be valued at about $84 billion at the high end of the range.
The company seeks to raise about $10 billion in its IPO. The company will begin its IPO roadshow on Friday.
The valuation sought is less than the $120 billion valuations that investment bankers told Uber last year it could fetch, and closer to the $76 billion valuations it attained in its last private fundraising round last year.
Uber and PayPal were not immediately available to comment on the IFR report.
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