READ ALSO: Uber seeking options including partial sale for Uber Elevate, says Axiosĭidi is also considering a new fundraising round ahead of the IPO in a bid to boost its valuation, two of the people said. Founded eight years ago, Didi began generating healthy profit in the second quarter this year and some investors are now keen to cash in, said one of the people. The people said Didi is targeting a valuation of more than $60 billion by the time of IPO launch, expected as soon as in the first half of 2021. Reuters‘ sources spoke on condition of anonymity as the information, including the identity of the banks, was private. Uber‘s rival, the Chinese company recently launched operations in Argentina and currently operates in other four Latin American countries ( Mexico, Colombia, Chile, Panama, and Costa Rica), besides having a controlling stake in 99 in Brazil. READ ALSO: Brazilian ride-hailing app 99 launches digital account It’s looking to formally appoint lead banks for the float in the coming months, two of them said. tension, people with knowledge of the matter said.ĭidi, backed by technology investment giants SoftBank, Alibaba and Tencent, has started initial talks with investment banks for the long-awaited IPO, according to three people.
The people said Didi is targeting a valuation of more than $60 billion.Ĭhina’s top ride-hailing firm Didi Chuxing is considering Hong Kong for a multibillion-dollar initial public offering next year, dropping previous aims to list in New York amid rising Sino-U.S.People with knowledge of the matter told Reuters that Didi has started initial talks with investment banks for the awaited IPO.It is also examining whether the pricing mechanism used by Didi’s core ride-hailing business is sufficiently transparent.Īt the time, Didi said it would not comment on unsubstantiated speculation from unnamed sources. The State Administration for Market Regulation ( SAMR) is investigating whether Didi used competitive practices that unfairly squeezed out smaller rivals. Last week, Reuters reported that China’s market regulator had begun an antitrust investigation of Didi, citing sources with knowledge of the matter. Morgan Stanley Investment Management has indicated interest in subscribing for up to $750 million worth of stock in the IPO and Singapore’s Temasek for $500 million, Didi’s updated prospectus shows. listing of this size is shorter than the usual 10 days of most. Investor presentations, led by Didi’s vice president and head of capital markets, David Xu, will run until Tuesday. At the top of the range, the deal will raise $4.03 billion.Īn overallotment option could see the company sell an extra 43.2 million shares to raise up to an extra $605 million.
“It’s also challenging for the company to expand in lower-tier cities due to increasing competition from rivals, not to mention the potential impact of a regulatory crackdown.”ĭidi set a price range of between $13 and $14 per American Depositary Share ( ADS), a regulatory filing showed on Thursday, and said it would offer 288 million such shares in the IPO. “Its market share is already very high in big cities, which means there is limited room for its future growth,” the source added.
“Many investors still doubt if Didi can maintain a high growth rate for its core ride-hailing business in China,” said a prospective investor at one Hong Kong-based hedge fund who asked not to be identified as he was not allowed to speak to media. peer Uber Technologies Inc, rather than Grab, Southeast Asia’s biggest ride-hailing and food delivery firm.ĭidi not respond to a request for comment on its bookbuilding exercise. Didi was hoping it could command a valuation of as much as $100 billion, Reuters reported in March.Īt the new valuation, Didi would be valued more like its U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014, is expected to price on Tuesday, and the shares to start trading on Wednesday.ĭidi’s indicated price range would give it a valuation of $62.4 billion to $67.2 billion.
The listing in New York, which will be the biggest U.S. Chinese ride-sharing giant Didi Global Inc’s $4 billion initial public offering ( IPO) received enough investor demand to clinch its targeted price range on Friday, vindicating a lowering of valuation expectations, people familiar with the matter said. By Scott Murdoch, Julie Zhu and Yilei Sun
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