Chinese ridesharing giant Didi targets over $ 60 billion valuation for NYSE debut
June 24 (Reuters) – China’s largest rideshare company Didi Global Inc is targeting a valuation of more than $ 60 billion when it debuts on the New York Stock Exchange (NYSE), preparing it for what will likely be the biggest US initial public offering (IPO) this year.
But the terms of the deal suggest a conservative approach for Didi who, according to sources, previously envisioned a valuation of at least $ 100 billion. Its valuation has exceeded $ 60 billion per year after it was raised in 2017, sources said. Read more
Didi has set a price range of between $ 13 and $ 14 per American Depositary Share (ADS) and said it will offer 288 million of those shares in its NYSE IPO. At the high end, Didi hopes to raise just over $ 4 billion.
Four ADS represent one Class A common stock, Didi said Thursday in a regulatory filing filed under its official name Xiaoju Kuaizhi Inc.
The IPO will be one of the biggest sales of U.S. stocks by a Chinese company since Alibaba raised $ 25 billion in 2014.
The New York listing plan comes amid a sweeping regulatory crackdown on China’s largest technology “platform” companies, including Alibaba and Tencent.
Earlier this month, Reuters reported that China’s market regulator launched an antitrust investigation into Didi. Read more
The company is backed by the largest technology investment firms in Asia, including SoftBank Group Corp (9984.T), Alibaba Group Holdings (9988.HK) and Tencent Holdings (0700.HK).
Prior to moving to New York, Didi saw Hong Kong as a potential location for a multibillion-dollar IPO in 2021.
Outside of China, Didi, the world’s largest mobility technology platform, operates in 15 countries and has more than 493 million annual active users worldwide.
Didi CEO Cheng Wei said last year that the company aims to have 800 million monthly active users globally and complete 100 million orders per day by 2022, including orders from carpooling, bicycles and food delivery.
Its core business is a mobile app used to hail taxis, private cars, ridesharing options, and even buses in some cities.
It became the first online ridesharing company in China after market share battles with Alibaba-backed Kuaidi and the Chinese unit of Silicon Valley-based Uber, both of which merged with Didi when the investors sought to take advantage of losing companies.
In 2016, Uber sold its business to Didi for a 17.5% stake in the Chinese company, which also invested $ 1 billion in Uber. The US company now owns 12.8% of Didi, according to documents filed during the IPO.
In addition to carpooling, Didi carries out various activities around mobility, in particular electric vehicle charging networks, fleet management, car manufacturing and autonomous driving.
Goldman Sachs, Morgan Stanley and JP Morgan are the main underwriters of Didi’s NYSE float. He added more than a dozen new ones on Thursday, including BofA Securities, Barclays, China Renaissance, Citigroup, HSBC and UBS Investment Bank.
Report by Niket Nishant in Bangalore; Editing by Vinay Dwivedi
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