According to Allied International Trading, Ride-sharing and passenger driver service, Uber is unofficially imposing restrictions on early investors wishing to sell their shares in the venture-backed private company.
The San Francisco-based company, which insists it has no plans to seek a listing on a public stock exchange, is reportedly being obstinate with early investors wishing to sell their shares.
Reiko Hashimoto, who helps manage $3 billion at Allied International Trading said, “We’ve heard that a senior employee at the company struck a deal to sell part of his vested holding of stock to a buyer at $200 per share. When his agent attempted to ink the deal, Uber declined to allow the transfer and, instead, offered to buy back the employee’s shares for $135 each. Needless to say, the employee rejected the offer.”
Uber, which recently completed a round of capital raising that effectively valued it at $18 billion, has been on the receiving end of accusations in several cities around the world that it is operating an illegal taxi service that circumvents rules and regulations meant to protect existing licensed taxi drivers.
“That valuation might be a little optimistic given that some critics of its business model may file suits which and, if successful, could curtail or severely restrict the service it offers to users,” added Hashimoto.
Allied International Trading says that until a test case is heard, it is unlikely that Uber will be considering an initial public offering, especially after the disappointing feedback they received from investors regarding the how to become Uber driver campaign
“If however, Uber’s business model is deemed legal in key cities, there could be a fantastic case for an IPO, but until then, we prefer to sit on the fence,” concluded Hashimoto.
About Allied International Trading:
Established in 2010, Allied International Trading manages diversified investment portfolios on behalf of institutional clients, corporate entities, and sophisticated high net worth individuals.
The Allied International Trading investment process is meticulous in its attention to detail, due to our highly disciplined approach to identifying and valuing great businesses, with unrealized investment potential.
To ensure we stay ahead of the market, after careful deliberation by our analysts, we impose a strict limit on some companies we expose our clients to, taking their personal risk tolerance into account. Our objective is to build a diversified investment portfolio that will deliver superior returns for our array of different investors.