A logo of the giant giant Didi Chuxing displayed on a building in Hangzhou in China’s eastern Zhejiang province.
STR | AFP | Getty Images
Chinese giant Didi Chuxing filed on Thursday to be announced in what could be one of the biggest technology IPOs this year, placing major shareholders Uber and SoftBank for a win.
The company reported $ 21
Uber owns 12.8% of the shares in the company after selling its Chinese equestrian business to Didi in 2016, while SoftBanks Vision Fund owns 21.5%.
Between 2019 and 2020, Didi’s revenue fell almost 10% when the Covid pandemic hit China hard last year. Prior to the pandemic, however, revenue grew by 11% between 2018 and 2019. In addition, revenue increased back in the first quarter, as the pandemic is in full swing with a growth of 107% in the first quarter from the previous year’s quarter.
Some of the company’s profitability in the first quarter can be credited to gains on investments of DKK 1.9 billion. $ Related to spin-offs and divestitures.
In comparison, Uber reported a net loss of $ 108 million on revenue of $ 2.90 billion in the first quarter. Throughout 2020, Uber’s net loss was $ 6.77 billion. At $ 11.14 billion. In circulation.
According to PitchBook data, Didi was last valued at $ 62 billion. Dollar after a fundraising round in August and is backed by investment giants such as SoftBank, Alibaba and Tencent. Bloomberg reported that the company could have a valuation of $ 100 billion at the time of the IPO.
The listing, which may be one of the biggest technological debuts globally this year, is bringing back the demand for riding hail and travel companies due to a drop in Covid-19 cases and rollout of vaccines. Its US counterparts, Uber and Lyft, have both said they will be profitable on an adjusted basis before the end of this year thanks to the recovery.
Didi acquired Uber’s China business in 2016 in a complicated transaction involving both companies taking shares in each other. Didi said it sold all of its shares in Uber in November and December last year.
Founded in 2012, Didi said it has 493 million annual active riders and 15 million annual active drivers. Didi has been named to the CNBC Disruptor 50 list four times.
(The exact name of the company as registered on F-1 is Xiaoju Kuaizhi.) Goldman Sachs, Morgan Stanley and JP Morgan account for.
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