I have my final round for a role at Uber in early April. Let's assume I manage to secure an offer, would I be better off trying to push to secure prior to, or post ipo? I know RSUs are granted as common stock nowadays with a fixed valuation of $33/share. I guess the point here is do we believe the shares will materially appreciate / depreciate in value immediately post ipo? Short term performance in the weeks post ipo are going to be the key determinant of if the quantity of shares I'm issued is above or below a valuation based on $33.
$33/share? No I think $42/share.
Funny thing about markets is people factor in other people opinion for their valuation and their money. What makes you think that they’ll give so much stock that it makes a difference
In general stocks go up on the day of the IPO since ibanks intentionally undervalue the stock...
C’mon, all the way down the slide. Woohoo!
It's a relatively senior role, and the recruiter has stated my package will be stock heavy as they cannot match my current base. I assume the RSU total will be based on a monetary figure in USD, which will then be backed out into a number of shares based on the valuation. From my understanding the $42 is the preferred stock price not common stock price. But I could be mistaken.
You are mistaken on all your share price numbers
I just got an offer and you are exactly right. Join before IPO for maximum amount of rsu
Don't take the risk. Very high risk that it will go down wildly, and at this point you will not got your stocks until one year after you start. At this point it would be a better strategy to delay the offer until one two months after the IPO to get a view on what's going on
If offered a position, I'd plan on holding the stocks for 5+ years. The question here is how to maximise the total number of shares granted, by gaming the valuation with repsect to timing the negotiation / offer date. If the share price is expected to drop below the current fixed valuation price in the 4 weeks post ipo, then it makes sense to wait. If it grows it makes sense to sign prior to ipo.
Can you extend your offer up to 4 weeks though?
Hard to say, it would be a case of trying to time the process around the ipo date, or using supported arguments on expected impact on share movements as negotiation points. The comment below on monitoring lyft's ipo is a great one.
You can also sign before the IPO and start on a pre IPO valuation. If it doesn't go well, you can quit after Two months. But I would honestly not take the risk. Uber is a dumpster fire and you can see from every other threads that besides Uber employees nobody believe it's sustainable at that price point
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What’s the $33 translate to in terms of their valuation?