Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ China’s Uber-like service eyes blockbuster IPO

China’s Uber-like service eyes blockbuster IPO



Didi Chuxing, China’s largest company fighting for tourism, on Thursday announced its application for an IPO in the United States and set the stage for what is expected to be the world’s largest IPO this year.

The company – backed by Asia’s largest technology investment companies, SoftBank, Alibaba and Tencent – did not disclose the size of the offer, but sources familiar with the matter have previously told Reuters that the giant giant could raise about $ 1

0 billion and seek a valuation of nearly $ 100 billion.

At this valuation, Didi’s IPO would be the largest Chinese stock offering in the United States, as Alibaba raised $ 25 billion in its giant IPO in 2014.

RIDE SHARE PRICES FOR UBER, LIFT CONTINUES TO SPIKE NATIONAL CENTRAL DRIVER CARD, HIGH REQUIREMENTS

In its filing Thursday, Didi revealed slower revenue growth in 2020 due to the impact of the COVID-19 pandemic, which set the global automotive industry to an end as lockdowns were enforced across the globe.

In 2020, Didi reported revenue of 141.7 billion yuan ($ 22.17 billion), down from 154.8 billion yuan a year earlier. The net loss was 10.6 billion yuan in 2020 against 9.7 billion yuan a year earlier.

However, Didi started strongly in 2021 when companies reopened in China. Revenue more than doubled to 42.2 billion yuan (US $ 6.4 billion) for the three months ended March 31, from 20.5 billion yuan a year earlier.

CHINESE IPO GOLD RUSH

Didi confidentially filed his IPO in April. A source familiar with the case on Thursday said Didi aims to go public in July.

ROBINHOOD BOLSTERS BOARD OF DIRECTORS BEFORE DESCRIPTION

The mega IPO highlights the lucrative business opportunity that Asian technology giants present to Wall Street’s major investment banks.

Earlier this year, Singapore’s largest firm, Grab, entered into a $ 40 billion deal with a special acquisition firm, backed by investment firm Altimeter, to be listed in the United States.

Didi Chuxing, China’s largest equestrian company, has made its public application for an IPO in the United States, setting the stage for what is expected to be the world’s first IPO this year.

Last year, Chinese companies raised $ 12 billion from U.S. IPOs, more than tripling the fundraising amount in 2019, according to data from Refinitiv. This year, the rise from Chinese fluctuations on US stock markets is expected to comfortably surpass last year’s figures.

Didi, which merged with then-main competitor Kuaidi in 2015 to create a smartphone-based transport services giant, counts as its core business a mobile app where users can pay tribute to taxis, privately owned cars, car pool options and even buses in some cities.

CLICK HERE TO READ MORE ABOUT FOX BUSINESS

Didi plans to list U.S. custodian shares (ADSs) on either the Nasdaq or the New York Stock Exchange under the symbol “DIDI,” as the company said.

Didi CEO Cheng Wei said last year that the company aims to have 800 million active users each month globally and complete 100 million orders a day by 2022, including ride-sharing, bike and food delivery orders.

Goldman Sachs, Morgan Stanley and JPMorgan are leading insurers for the offering.

($ 1 = 6.3929 Chinese renminbi)


Source link