Deals
Morgan Stanley Got Clients Into Uber. Then the IPO Stumbled
- Bank pitched stock at $48.77 price in private offering in 2016
- Uber shares set to fall to below $41 on second day of trading
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Morgan Stanley investment bankers stand to reap millions of dollars in fees for leading Uber Technologies Inc.’s initial public offering last week. Yet wealthy clients are facing losses.
In 2016, the firm offered its elite clientele a chance to get in early on Uber’s eventual market listing as the investment bank privately raised money for the ride-hailing platform. On Friday, the stock tumbled more than 7% on its debut leaving those early buyers among the droves of everyday shareholders nursing losses -- at least for now. The shares fell a further 8.3% at 9:35 a.m. in trading in New York on Monday.