A Chinese fund manager is investing in Uber Technologies Inc. amid speculation that the ride-sharing service is preparing for an initial public offering.
Hillhouse Capital Group is leading an investment that involves buying bonds that convert into shares at a discount to Uber’s IPO price, the Wall Street Journal reported, citing sources familiar with the situation.
Uber expects to receive hundreds of millions of dollars of fresh funds from the Hillhouse-led deal, the newspaper said.
The San Francisco-based company has not publicly announced any IPO plans, but its series of fundraising activities indicate that it is laying the groundwork for an eventual listing.
In January, Uber got US$1.6 billion in financing from Goldman Sachs Group Inc.’s wealth-management division in a deal that also involves convertible bonds.
The terms of the convertible bond deals provide investors with a return that continues to grow the longer Uber waits to go public, thus encouraging the company to list shares sooner, the Journal said.
Hillhouse is also an investor in Didi Kuaidi Joint Co., China’s largest taxi-hailing app and Uber’s biggest competitor in the country, the report said.
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