Prime Highlights
- Lime plans to include Uber as an anchor investor in its upcoming U.S. IPO.
- The company is preparing to raise around $200 million as it moves toward public listing.
Key Facts
- Lime operates an electric bike and scooter network and filed for a U.S. IPO in May.
- Uber is expected to contribute a significant investment and support the offering.
Background
Electric bike and scooter operator Lime plans to name Uber as an anchor investor in its upcoming US initial public offering, according to a report by The Information citing a single source familiar with the matter.
Uber is expected to put in a meaningful sum and appear as an anchor investor on the cover of an updated IPO prospectus that Lime plans to file. The San Francisco-based startup is also preparing to kick off a roadshow this week to meet potential investors as it looks to raise around $200 million at a valuation of approximately $1.8 billion.
Lime filed to go public in the United States in May and reported a jump in annual revenue as part of that filing. The company intends to use the proceeds from the listing to fund its operations, clear all outstanding debt and invest in or acquire complementary technologies, assets or intellectual property.
Uber already has an established financial relationship with Lime. The ride-hailing giant is one of the startup’s existing backers and has guaranteed a $115 million Lime loan that falls due in September, according to the report.
Reuters said it could not immediately verify the report, and neither Uber nor Lime responded to requests for comment at the time of publication.
The anchor investor move would give Lime a high-profile backer front and centre as it enters the public markets, lending credibility to the offering ahead of investor meetings.
Uber’s involvement also signals continued confidence in the shared micromobility sector as Lime pushes ahead with its listing plans.
