Didi Global (DIDI), which operates China’s largest ride-hailing network, is looking to raise $3.9 billion with one of the most anticipated initial public offerings this year. The Didi IPO trades Wednesday.
Sometimes called the Uber (UBER) of China, the Didi IPO is offering 288 million American depositary shares with an estimated price range of $13 to $14. That gives the company a market valuation of about $67 billion.
“Didi Global has the advantage of a strong IPO market, which includes solid performances from large-cap China-based companies, but also has a tailwind of Uber’s stock performance in the recent year,” IPO research and investment firm IPO Boutique said in a note to clients.
The firm also said investor demand for shares is well above what’s being offered, with the deal being “many multiple times oversubscribed.”
The Didi IPO is the largest out of China since Alibaba Group (BABA) in 2014.
Founded in 2012, Didi operates in 16 countries, including Brazil and Mexico. It has 493 million active annual users and 15 million annual active drivers, according to the Didi Global IPO filing. It averages about 41 million transactions per day.
The Beijing-based company says it is the “world’s largest mobility technology platform.”
Didi IPO: Revenue More Than Doubles
In the first quarter, Didi Global reported revenue of $6.4 billion, more than double the year-earlier period, with net income of $837 million. For 2020, it had revenue of $21.6 billion, down 8%, as the pandemic cut into business, with a net loss of $1.6 billion.
The Didi IPO will trade on the New York Stock Exchange under the ticker DIDI. The lead underwriters are Goldman Sachs, Morgan Stanley and JPMorgan.
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