Wednesday, July 6, 2022
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Asia

Chinese ride-hailer Didi seeks $4bn in US IPO

MtR by MtR
June 25, 2021
in Asia
0


HONG KONG — Chinese ride-hailing company Didi Chuxing is seeking to raise up to $4 billion in an initial public offering in the U.S, according to its latest regulatory filing.

The IPO would be one of the biggest by a Chinese company in the U.S. since Jack Ma’s Alibaba Group Holding went public in 2014. But Didi appears to have scaled back expectations as earlier reports suggested that it would seek to raise up to $10 billion.

The company, backed by SoftBank Group and Tencent Holdings, is looking to sell 288 million American depositary shares within a price range of $13 to $14, according to a regulatory filing. At the top end, the company would be valued at around $67 billion, or almost the same as in a 2018 fundraising. Each ADS represents four ordinary shares.

Didi had once targeted a valuation of as much as $100 billion in the IPO, according to people familiar with its intentions, but preliminary investor meetings led it to lower its sights.

“The discussions revealed investors considered such valuation as lofty amid regulatory scrutiny and lack of profit visibility for cash-guzzling international operations and other services such as food delivery and electric vehicles,” a person close to the transaction said.

Morgan Stanley, the lead underwriter of the IPO, has indicated interest in subscribing to shares worth $750 million at the midpoint of the IPO range. Singapore government investment fund Temasek has said it is keen to take up shares worth $500 million, according to the prospectus.

Didi is the latest Chinese company to shrug off tensions between Washington and Beijing as it aims to tap the U.S. capital markets for their greater liquidity and investor demand for high-growth businesses.

But its IPO also follows signs that Beijing is stepping up regulatory action against major technology platforms, including imposing a record 18.2 billion yuan ($2.81 billion) fine on Alibaba. In March, Didi was fined 1.5 million yuan for “improper pricing behaviors.”

Reuters last week reported that China’s antitrust regulator was probing whether Didi used anticompetitive practices to squeeze out smaller rivals and if its pricing mechanism was transparent enough.

In its IPO application, Didi said it was among more than 30 Chinese internet companies that met with regulators in April and were asked to conduct self inspections and submit compliance reports. Didi said it has already done so.

Among other Chinese companies seeking U.S. IPOs are hotel chain Atour Lifestyle Holdings and online grocers Dingdong Maicai and Missfresh. The three are seeking almost $1 billion combined.

Some candidates have developed cold feet at the last moment though. Tencent-backed social media platform Soulgate suspended its $185 million Nasdaq IPO this week just days before listing and Caixin reported on Friday that bike-sharing operator Hello, backed by Ant Group, has put its plan for a New York offering on hold.

The flurry of listings likely will push the 2021 total IPO proceeds for Chinese companies in New York well above last year’s $13.5 billion haul, which according to Dealogic data was the highest total since 2014’s record $29.1 billion. That figure included Alibaba’s $25 billion New York Stock Exchange IPO.

Didi was founded in 2012 by Cheng Wei and Jean Liu. It operates in 16 countries and serves more than 493 million annual active users on its global platform, according to the filing. Cheng is now CEO of Didi, while Liu, daughter of Lenovo Group founder Liu Chuanzhi, serves as president.

The company has established a strong lead in China’s ride-hailing market and in 2016 acquired its main rival, Uber China. Its mobility technology platform has 377 million annual active users in China and 13 million annual active drivers.

Japanese conglomerate SoftBank is Didi’s top shareholder, with a 21.5% stake through its Vision Fund. Tencent Holdings owns 6.8%. Uber, which sold its China operations to Didi in 2016 in exchange for a 17.5% stake, currently holds 12.8%.

Apple invested $1 billion in Didi in 2016 as part of a strategic partnership and an Apple executive serves as a director. But the iPhone maker is not listed as a principal shareholder in the filing.

Last year, Didi reported a net loss of $1.6 billion and in the first three months of the year logged a loss from operations of $1 billion. However, it reported net income then of $837 million, boosted by investment returns.

While analysts expect its ride-hailing business in China to turn profitable within the next two years, they are not as confident about the international business or other operations.

China remains the company’s main revenue driver, with foreign markets accounting for 1.6% of total revenue.





Source link

Related articles

Fight or flight? What rising interest rates, inflation and volatile markets mean for investors

July 5, 2022

Asia Pacific Pet Vitamins And Supplements Market Size, Scope and Forecast

July 5, 2022

Related Posts

Fight or flight? What rising interest rates, inflation and volatile markets mean for investors

by MtR
July 5, 2022
0

SINGAPORE: It has been a punishing six months for investors. From stocks to bonds, markets have been dealt blows from...

Asia Pacific Pet Vitamins And Supplements Market Size, Scope and Forecast

by MtR
July 5, 2022
0

New Jersey, United States – The Asia Pacific Pet Vitamins And Supplements Market research report aims at providing a quick overview of...

Asia Pacific Frp Vessels Market Growing Rapidly with Latest Trend and Future scope with Top Key Players 2020-2027

by MtR
July 5, 2022
0

Emergen Research Logo Increasing demand for FRP vessels from the automotive industry is one of the significant factors driving the...

Asia Pacific (APAC) Networking Equipment Market Size, Scope and Forecast

by MtR
July 5, 2022
0

New Jersey, United States – The Asia Pacific (APAC) Networking Equipment Market research report aims at providing a quick overview of the...

Sensex today: Pre-market action: SGX Nifty signals a positive start; Asian stocks edge higher

by MtR
July 5, 2022
0

!1 New UpdateClick here for latest updatesAsia stocks edge higher; growth, inflation fears check gainsAsian shares inched up on Tuesday...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
Fed tapering and emerging markets

Fed tapering and emerging markets

June 7, 2021
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

MARKET LIVE: Sensex, Nifty flat; metal stocks slump in pre-open

July 6, 2022

Annapurna Swadisht Ipo In August | Kolkata News

July 6, 2022

Mutual Fund Window Open, but Not Much Going Through

July 6, 2022

Passive Index ETF Investments Could Be Adding to EM Volatility

July 6, 2022

Recent News

MARKET LIVE: Sensex, Nifty flat; metal stocks slump in pre-open

July 6, 2022

Annapurna Swadisht Ipo In August | Kolkata News

July 6, 2022

Mutual Fund Window Open, but Not Much Going Through

July 6, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter