How NYSE move could propel Saudi share in Uber to $16 bln

The Vision Fund in January this year led a $9 billion funding round in Uber, ending up owning 17.5 percent of the company. (Shutterstock)

With an eye on the future and as part of its economic diversification, Saudi Arabia has recently been investing in technology-based companies.

One such firm is the US ride-hailing company, Uber. In 2016, the Public Investment Fund (PIF) – the Saudi sovereign wealth fund – invested $3.5 billion in Uber directly, securing a 5.6 percent share.

Later, the PIF invested $45 billion in SoftBank’s $93 billion Vision Fund, which is Uber’s largest investor, making the company a major beneficiary of Saudi funding.

Saudi Arabia is also one of the key markets for Uber in the Middle East.

The Vision Fund in January this year led a $9 billion funding round in Uber, ending up owning 17.5 percent of the company. At that time Uber share was estimated to be worth $33 and the worth of the company was valued at $62 billion.

It is estimated that at present the Saudi share in Uber – through its direct investment and the SoftBank stake – is around 14 percent.

Uber has plans to list on the New York Stock Exchange next year and experts say the company could target a valuation of $120 billion. If that target is achieved, the Saudi share could be worth around $16 billion.

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Last Update: Wednesday, 20 May 2020 KSA 09:52 - GMT 06:52
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