According to The Wall Street Journal this morning, Uber is reportedly seeking a $1 billion line of credit from a handful of banks, an action that could signal an oncoming initial public offering from the company.
The WSJ reports that people familiar with the matter say that the car-sharing company has been in touch with about six to seven banks to talk about the possible terms. Citing companies like Facebook, Twitter, and Alibaba prior to their IPOs, the Journal says that seeking large credit facilities is sometimes a sign that a company is about to seek an IPO.
Per The Wall Street Journal:
“Negotiating a credit line is a move that often signals the early stages of preparation for an IPO as it helps cement relationships with banks, though the two capital raisings aren’t necessarily linked. An IPO isn’t imminent, however, people familiar with the talks said. One person said a debut wasn’t expected until next year at the earliest.”
Uber is currently valued at $41 billion and had a revenue of about $400 million last year. But a credit line isn't something too odd considering that the company has many other plans on its agenda that involve forking over some cash. The company recently placed a bid to acquire Nokia's Here mapping unit, and has planned to break into markets in India and China.