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Uber Technologies (UBER) set the indicative price of its planned IPO that would value the ride-sharing group at around $85 billion, well below the $120 billion valuation investors had pegged prior to the debut of rival Lyft Inc. (LYFT)  last month.

Uber said it would price shares in the range of $44 to $50 each, according to documents filed with the Securities and Exchange Commission, and plans to sell around 180 million shares. At the top end of that range, Uber would raise around $10.35 billion, around five times the amount raised by Lyft on March 29. 

"Today, Uber accounts for less than one percent of all miles driven globally. Just a small percentage of people in countries where Uber is available have ever used our services," said CEO Dara Khosrowshahi in a letter to investors published alongside the IPO details. "And we are still barely scratching the surface when it comes to huge indsutries like food and logistics, and how the future of urban mobility will reshape cities for the better."

"Building this platform has required a willingness to challenge orthodoxies and reinvent -- sometimes even disrupt-- ourselves," he added. "Over the last decade, as the needs and preferences of our customers have changed, we've changed too. Now we're becoming something different once again: a public company."

Uber also said PayPal Holdings Inc. (PYPL - Get Report) would buy $500 million worth of shares of its common stock in a private placement that will be subject to a 270-day lock-up agreement. The two groups will also explore future commercial payment collaborations Uber said, including the development of a digital wallet.

PayPal shares were marked 0.1% higher in pre-market trading following the Uber statement, indicating an opening bell price of $110.30 each, a move that would extend the stock's year-to-date gain to around 25.75%.

Uber said gross bookings over the whole of 2018 rose 45% to $49.8 billion, while group revenues jumped 42% to $11.3 billion. Uber said it sees first quarter revenues of between $3.05 billion and $3.104 billion, but will likely post a net loss of around $1 billion.

The lower-than-expected valuation for Uber follows a rough debut for rival Lyft, which rose more than 23% to $87.24 each on its first day of trading on the Nasdaq before losing some 35% from that time, to close at $57.24 on Friday.