By Anirban Sen and Niket Nishitant
(Reuters)-China’s largest ride-haling company, Didi Global Inc, makes its debut on the New York Stock Exchange (NYSE), aiming for a valuation of over $ 60 billion, making it the largest initial public offering in the United States. It is set to the one with high possibility. This year’s initial public offering (IPO).
However, the terms of the deal suggest Diddy’s conservative approach, which previously aimed at a valuation of at least $ 100 billion, according to sources. After raising funds in 2017, its valuation exceeded $ 60 billion annually, according to sources.
Diddy announced that it will offer 288 million shares in NYSEIPO, setting a price range of $ 13 to $ 14 per American Depositary Receipt (ADS). At the upper end of the range, Diddy expects to raise over $ 4 billion.
Didi said in a filing with regulators registered under the official name Xiaoju Kuaizhi Inc. on Thursday that four ADSs represent one Class A common stock.
The IPO will be one of the largest sales of US stocks by Chinese companies since then. Alibaba (NYSE :) raised $ 25 billion in 2014.
The New York listing plan is in the midst of a thorough regulatory crackdown on China’s largest tech “platform” companies, including Alibaba and Tencent.
Earlier this month, Reuters reported that Chinese market regulators had begun investigating antitrust laws against Diddy.
The company is backed by Asia’s largest technology investment companies such as SoftBank Group Corp, Alibaba Group Holdings and Tencent Holdings (HK :).
Prior to settling in New York, Diddy saw Hong Kong as a potential venue for a multi-billion dollar IPO in 2021.
With the exception of China, Didi, the world’s largest mobility technology platform, operates in 15 countries and has more than 439 million active users annually worldwide.
Didi CEO Cheng Wei gained 800 million monthly active users worldwide last year and will receive 100 million daily orders by 2022, including ride-sharing, bike and food delivery orders. He said he was aiming to complete it.
We count taxis, private cars, carpool options, and even mobile apps used to call buses in some cities as our core businesses.
After a market share battle between Alibaba-backed Quidy and Silicon Valley-based Uber (NYSE :)’s Chinese unit, it has become China’s top online ride-hailing business. -Lose your business.
In 2016, Uber sold its business to Didi and acquired a 17.5% stake in a Chinese company. Uber has also invested $ 1 billion. IPO filings show that US companies now own 12.8% of Didi.
In addition to ride sharing, Didi operates a variety of mobility businesses, including electric vehicle charging networks, fleet management, vehicle manufacturing and self-driving.
Goldman Sachs (NYSE :), Morgan Stanley (NYSE :) and JP Morgan are lead managers of Diddy’s NYSE Float. On Thursday, more than 12 new ones were added, including BofA Securities. Barclays (LON :), Chinese Renaissance, Citigroup (NYSE :), HSBC and UBS Investment Banks.
Chinese ride-haling giant Diddy aims to value more than $ 60 billion on Reuters’ debut on the New York Stock Exchange
Source link Chinese ride-haling giant Diddy aims to value more than $ 60 billion on Reuters’ debut on the New York Stock Exchange