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The Company Didi Chuxing, China’s Uber, has announced its application for an initial public offering (IPO) in the US as part of what may be the largest public offering in the world this year.
Didi Chuxing publishes IPO documents
The rideshare company didn’t disclose the size of its offering, but sources had previously told Reuters that it could raise about $ 10 billion and aim for a valuation of nearly $ 100 billion. according to Fox business, Didi Chuxing’s IPO would be the largest Chinese offering in the US since Alibaba raised $ 25 billion when it went public in 2014.
- To learn more: Health workers will have access to free travel and food through the DiDi Hero program
In his presentation on Thursday, Didi revealed that revenue growth slowed over the past year due to the pandemic that brought the global ridesharing industry to a standstill due to worldwide lockdowns.
The company had sales of 141.7 billion yuan ($ 22.17 billion) last year, compared to 154.8 billion yuan a year ago. Didi reported a net loss of 10.6 billion yuan last year, compared to a loss of 9.7 billion yuan last year.
Despite the slowdown in 2020, Didi Chuxing has had a strong 2021 due to the reopening of the store in China. The ridesharing company’s revenue more than doubled from 20.5 billion yuan in the first quarter of last year to 42.2 billion yuan (6.4 billion US dollars) in the first quarter of this year.
Didi Chuxing had a strong 2021 due to the reopening of the store in China / Image: Depositphotos.com
Opportunities in Chinese offers
Grab, Singapore’s largest rideshare company, went public in the United States earlier this year through a merger with a special purpose vehicle (SPAC) backed by investment firm Altimeter. Chinese companies raised 12 billion contributions in the United States last year, more than three times the amount they raised in the American Union the previous year, according to Refinitiv data. according to Fox business, Chinese companies are expected to raise even more Chinese fleets on US stock exchanges than they did last year.
Didi merged with competitor Kuaidi in 2015 to create its core business, a mobile app that allows users to take rides in private vehicles, carpools and even buses in some areas. The company had $ 20.4 billion in revenue from its rideshare last year, but CNBC found that its app has several other offerings related to moving, gas stations, personal finance, and bike rentals.
- To learn more, DiDi will provide $ 10 million to support vaccination efforts around the world
Didi is preparing to list its US Depository Shares on the New York Stock Exchange or Nasdaq under the ticker symbol “DIDI”. CEO Cheng Wei said last year his goal is to have 800 million monthly active users and 100 million orders per day by 2022.