company lost a price war and ended up selling its China operations to Didi for a stake. The company counts SoftBank, Uber Technologies Inc and Tencent as its main backers.ĭidi is also known for successfully pushing Uber out of the Chinese market after the U.S. Cheng was joined by Jean Qing Liu, a former Goldman Sachs banker and the current president of the ride-sharing company.
Advertisementĭidi’s IPO was covered early on the first day of the book-build last week and the investor books were closed on Monday, a day ahead of schedule.Īn over-allotment option, or greenshoe, exists where another 43.2 million shares can be sold to increase the deal size.ĭidi was co-founded in 2012 by former Alibaba employee Will Wei Cheng, who currently serves as the chief executive officer. “The volatile IPO environment helped to lower (Didi) IPO price and valuation looks attractive,” said Douglas Kim, a London-based independent analyst, who writes on Smartkarma. share sale by a Chinese company since Alibaba raised US$25 billion in 2014, comes amid record and volatile IPO activity this year as firms rush to capture the lucrative valuations seen in the U.S. The listing, which will be the biggest U.S. Didi said at the time it would not comment on “unsubstantiated speculation from unnamed source(s)”. There was also uncertainty over how an antitrust probe into Didi, revealed by Reuters this month, would impact the business.
Investors baulked at the US$100 billion target given concerns the company’s future growth prospects could be curbed by the chance of greater regulation of the ride-sharing sector by transport authorities in the future. The size of the deal was cut during briefings with investors ahead of the IPO’s launch. The company is expected to debut on the New York Stock Exchange on June 30.ĭidi did not respond to a request for comment.ĭidi’s IPO is more conservative versus its initial aim for a valuation of up to US$100 billion, Reuters has previously reported. The decision to increase the deal size came after the Didi investor order book was oversubscribed multiple times, one of the sources said. This would give Didi a valuation of about US$73 billion on a fully diluted basis and US$67.5 billion on a non-diluted basis.
IPO on Tuesday, pricing it at the top of its indicated range and increasing the number of shares sold, according to two sources familiar with the matter.ĭidi sold 317 million American Depository Shares (ADS), versus the planned 288 million, at US$14 apiece, the people said on condition of anonymity ahead of an official announcement. REUTERS -Chinese ride hailing company Didi Global Inc raised US$4.4 billion in its U.S.
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