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Didi’s IPO prospectus paves way for over $ 65 billion listing

Didi Chuxing, the Chinese ridesharing company, has unveiled files for a takeover bid for shares in the United States, exposing the financial damage the pandemic caused to his business last year and the strength of the rebound so far. ‘now this year – and setting the stage for one of the biggest international lists of 2021.

Didi operates the dominant TV broadcast application in China and has recently spread across the world, while pumping money into electric vehicles and autonomous driving research.

Private investors previously valued Didi at $ 65 billion in a 2018 fundraiser, according to a person briefed on the matter, and the company would likely seek a higher valuation in the public offering.

According to the investor reception, Didi’s list would rival in size with the market debut of Korean e-commerce company Coupang earlier this year, which was the largest US public offering for an international company since that of Alibaba in 2014.

Didi’s income fell 8.5% to Rmb 141.7 billion ($ 21.6 billion) in 2020, according to the documents, as the coronavirus pandemic shook its core running business. Losses also increased to Rmb 10.6 billion ($ 1.6 billion) during the same period.

However, activity rebounded in the first quarter of this year, allowing Didi to record 42.2 billion Rmb ($ 6.4 billion) in revenue and a net profit of 5.5 billion Rmb (0.8 billion dollars). The company lost operating money during the quarter, but made a profit including gains on investments.

The Beijing-based company said its core ridesharing business in China has been profitable on an adjusted earnings before interest, taxes, depreciation and amortization since 2019.

Xiaoju Kuaizhi, Didi’s holding company, has applied for an offer of US depository shares on the US stock exchanges, in a listing expected next month. The public debut will be a milestone for the company, which has raised billions of dollars from SoftBank of Japan while battling early competition from Uber in its home market.

SoftBank, which has invested more than $ 10 billion in Didi, held a 21.5% stake in the company through its Vision funds, while Chinese internet giant Tencent had a 6.8% stake.

Uber, the ridesharing company, held 12.8% of the company after selling its Chinese business to Didi in 2016, in a largely share-based deal.

Didi would enter a hot market for initial public offerings, as well as a tense geopolitical environment for large Chinese tech companies at home and in the United States.

Regulators last month summoned executives from Didi and nine other freight transport and delivery companies to issue warnings about their data and pricing practices. In the filings, Didi said she faces multiple risks related to her Chinese business structure and government relations.

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