The IPO pricing is a balancing act for Uber's team of underwriting banks, led by Morgan Stanley, Goldman Sachs and Bank of America Merrill Lynch, to negotiate a good price while leaving some upside to ensure the stock trades up on its market debut.
Uber had originally suggested a price range of $44-$50 for its share price listing, valuing the company at up to $120bn. Its shares closed at $41.57. Uber raised nearly $25 billion in 23 rounds of financing before going public.
That's highly unusual, especially for a high-profile tech company like Uber Shares of rid-sharing rival Lyft soared 21 per cent at one point during its initial public offering in late March. Stocks were down sharply Friday morning after the two countries failed to reach a deal before a tariff deadline, but finished with gains.
Despite his company's rocky stock market debut, Uber CEO Dara Khosrowshahi says he's thrilled to complete his company's IPO and did not consider postponing the date.
"Our company is not a fair-weather company", Khosrowshahi said.
The Uber IPO comes a day after Uber and Lyft drivers went on strike to protest against low wages and lack of job security.
Lyft ended down 6.9% on Friday, and is 28 percent below its IPO price.
But it's relatively uncommon for USA technology companies backed by venture capital, like Uber.
"If a venture capital investor wants to burn cash they can do that as long as they want, but once you get to the public markets you have to show profitability or a path to it", said Jordan Stuart, a portfolio manager at Federated Kaufmann who often purchases companies' shares during an IPO.
"We were not expecting much of a pop, given the size of the deal" for Uber, Kennedy said. Kennedy points out that unlike Facebook, however, Uber hasn't been turning profits. Facebook's stock now trades just below $200.
Smaller Lyft saw its shares drop 6% to $%51.79.
Lyft priced its IPO aggressively on the top end of its expected range. Nevertheless, the offering values Uber at $82.4 billion - impressive, no doubt, but less than the $100 billion forecast Uber floated to investors this year and far below the $120 billion that some bankers anticipated last year.
Since its foundation in 2009, the company has lost about $9bn.
The listing gives Uber another roughly $8 billion to fund investment in its expansion, adding to the almost $25 billion raised in 23 private funding rounds, according to Crunchbase. As well as the original ride-hailing business, Uber is developing driverless cars and has a food delivery operation, Uber Eats.
The self-inflicted wounds included complaints about rampant internal sexual harassment, accusations that it stole self-driving auto technology, and a coverup of a computer break-in that stole personal information about its passengers.
Uber Technologies' lackluster stock-market debut is a warning for other tech unicorns. Hundreds, if not thousands, of other Uber employees are expected to become millionaires in the IPO.
SharesPost principal analyst Alejandro Ortiz said the timing for Uber trading to start was bad with the uncertainty over the trade spat with China.