July 25, 2021

China’s Didi raises $ 4.4 billion in US IPOs

  • Didi sold 317ml of ADS, more than the planned 288ml-sources
  • ADS sells for $ 14 a piece – Sources
  • Didi will give a $ 73 PLN rating on a fully diluted basis

June 29 (Reuters) – Chinese riding greeting company Didi Global Inc. (DIDI.N) Raising $ 4.4 billion in its U.S. IPO on Tuesday, it set the price at the top of its indicated range and increased the number of shares sold, according to two sources familiar with the matter.

Didi sold 317 million US Depository Shares (ADS) shares for $ 148 million against the planned $ 288 million, people said anonymously before the official announcement.

This would give Didi an estimated $ 73 billion on a fully diluted basis and $ 67.5 billion on a diluted basis.

One of those sources said that the decision to increase the contract size came after Didi investor order book was offered several times more subscription. The company is expected to make its debut on the New York Stock Exchange on June 30.

Didi did not respond to a request for comment.

It is very conservative against its initial intent to evaluate Didi’s IPO Up to $ 100 billion, Reuters previously reported. The contract size was reduced during meetings with investors prior to the start of the IPO.

Investors with a $ 100 billion target may be hampered by the company’s future growth prospects by the possibility of greater control of the ride-sharing sector by transportation authorities in the future.

There was also uncertainty about how Hopeless investigation into Didi, Revealed by Reuters this month, will affect business. Didi said he would not comment on “unsubstantiated speculation from unnamed sources (s)” at the time.

The list, which has been the largest U.S. stock sale by a Chinese company since Alibaba raised $ 25 billion in 2014, comes amid record and volatile IPO activity this year as companies rush to capture the lucrative ratings found in the U.S. stock market.

According to Douglas Kim, a London-based independent analyst who writes about smartkarma, “Didi) lowered the IPO price and the rating appears to be attractive.

On November 20, 2020, a Didi symbol was found at Didi Chuxing’s headquarters in Beijing, China. REUTERS / Florence Lo / File Photo

Didi’s IPO last week was the first day the book was created, and The Investor books closed Monday, One day before the schedule.

There is an additional allotment option or Greenshow that could sell another 43.2 million shares to increase the contract size.

History of DT

Didi was co-founded in 2012 by former Alibaba employee Will Wei Cheng, who currently serves as CEO. Jean King Liu Cheng, a former Goldman Sachs banker and current chairman of the ride-sharing company, has joined.

The company calculates SoftBank (9984.T), Uber Technologies Inc. (UBER.N) And Tencent (0700.HK) As its main supporters.

Didi is known for successfully expelling Uber from the Chinese market after the US company lost the price war and sold its Chinese operations for a stake. Liu Zhen, the leader of Uber China at the time, was a relative of Didi Liu.

Despite the ride-greeting services of automakers such as GEELY.UL and SAIC Motor, Didi dominates in China. (600104SS) Take market share. Uber has a presence in Europe and South America, where Didi is expanding.

Like most ride-and-greet companies, Didi was historically profitable until it made a profit of $ 30 million in the first quarter of this year.

Business collapsed during the epidemic, according to a regulatory filing that the company cut $ 1.6 billion in losses last year and $ 21.63 billion in 8% revenue.

Its shares are to start trading under the “DT” symbol.

Report by Echo Wang in New York and Anirban Sen in Bangalore and Scott Murdoch in Hong Kong; Editing by Greg Rumeliotis, Phil Bergrod and Himani Sarkar

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