Shares of China’s largest rider-salute service traded up 65 about 65.65 in New York, up nearly 20% from its initial public offering price of $ 14 a share.
At its starting price, Didi is valued at more than $ 80 billion.
In a statement at the time, Didi said, “I will not comment on unsubstantiated speculations from unnamed sources.” SAMR did not respond to a request for comment from CNN Business.
Despite the tensions, data provider Refinitive estimates that by 2020 Chinese companies will have raised about $ 12 billion from US lists. Nearly $ 8 billion has been raised by Chinese companies so far in 2021, more than three times the amount reached at the same time last year.
Didi is a symbol of two trends. Its upcoming launch marks one of the top 10 lists in the United States over the past decade, as well as the fourth largest U.S. IPO by a Chinese company, according to Diologic.
But in recent months, the company has been considering a double list in Hong Kong, says someone familiar with the matter.
A Chinese champion
The company now has the largest operating platform in the world, with users in 15 countries including China and Brazil, Mexico and Russia.
But it relies heavily on its home market: more than 93% of its sales come from China.
One-third of the fund will be used to develop its technology in areas such as electric vehicles and autonomous driving. The rest will come with new products or services or other strategic investments. In their letter, Cheng and Liu said the company was exploring new introductions in areas such as “in-city inventory, community group purchasing and food distribution.”
Like many startups, Didi struggled to make a profit for many years, despite making billions of dollars in revenue.
It was finally able to turn this year around, earning a net income of about $ 800 million for the quarter ended March.
“Didi is a terrific, founder-led, industry-leading innovator,” investor Jim Fryer, founder and CEO of Fryer Capital, told CNN Business in an email. “I look forward to their leadership from what I first invested in many years ago and look forward to the next chapter of their growth.”
The company plans to list on the New York Stock Exchange under the ticker symbol “DT”.
– CNN’s Beijing Bureau, Julia Horowitz, Pamela Boykoff, Jill Disease, Deeksha Madok and Paul R. La Monica contributed to this report.
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