DiDi Chuxing plans $ 60 billion valuation on US IPO
Chinese rideshare giant DiDi has named a goal of more than $ 60 billion for its New York Stock Exchange debut, according to a report from Investing.com.
It will likely be the largest IPO of an American company this year and represents the largest public offering by a Chinese company in the United States since Alibaba went public.
The terms of the offer suggest a more restrained approach from DiDi than expected. At one point, the rideshare company was expected to raise $ 10 million with a valuation of nearly $ 100 billion.
The news also comes as there has been a broad regulatory crackdown on some of the biggest tech companies in China, which included an antitrust investigation into DiDi.
DiDi had previously considered debuting on the Hong Kong list, for a multibillion-dollar IPO. But it ended up going with New York in the end.
The company has set a price range of $ 13 to $ 14 per American Depositary Share (ADS), and it will offer 288 million shares on the IPO, expecting to raise just over $ 4 billion. dollars.
According to the report, four ADSs represent one Class A common share.
DiDi operates in 15 countries outside of China and has more than 493 million annual users worldwide. The core business of the company is a mobile application used to report taxis, private cars and carpooling options. The company ended up buying Uber’s Chinese unit in exchange for the US ridesharing company getting a 17.5% stake in DiDi.
DiDi also manages other activities, including electric vehicle charging, fleet management, car manufacturing and autonomous driving.
PYMNTS wrote earlier this year that DiDi’s filing was somewhat of a comeback from the worst downturns in the pandemic. For the whole of 2020, reports showed that the company achieved sales of around 141.7 billion yuan, down 8.5% from the previous year.