Uber Technologies has signed a $1.5 billion accelerated share-repurchase agreement with Bank of America.
Uber on Monday said it expects an initial delivery of nearly 18.6 million shares, or around 80% of the shares covered by the deal, with the transaction slated to close during the first quarter.
The San Francisco ride-hailing and delivery company, which had more than 2.1 billion shares outstanding as of Oct. 31, sports a market capitalization topping $136 billion.
Uber said it is stepping up the pace of its repurchases because it believes its stock is undervalued relative to the strength of its business, adding that it expects to continue scaling its free cash flows significantly.
Uber said the accelerated buyback is part of its inaugural $7 billion repurchase unveiled last February. The company spent $701 million to buy back 10.1 million shares during the first nine months of 2024, leaving $6.3 billion available for repurchases as of Sept. 30.
Uber shares were recently up 4% at $67.20 in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com