Chinese private transportation company DiDi priced its shares at $ 14 and sold more than expected in its IPO when it debuted on the New York Stock Exchange.
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June
30, 2021
3 min read
On Wednesday, the Chinese private transport company DiDi Global Inc. (DIDI) debuted on Wall Street . The company’s shares were listed on the New York Stock Exchange with a price of 14 dollars each (about 280 Mexican pesos). With this Initial Public Offering (IPO) , DiDi raised $ 4.4 billion , and could still reach the expected $ 10 million .
DiDi sold about 317 million American Depository Shares (ADS), more than the 288 million shares contemplated.
Each share was offered for $ 14, the projected maximum, making it the largest Initial Public Offering (IPO) by a Chinese firm since Alibaba hit Wall Street in 2014 and raised $ 25 billion.
Thus, DiDi would reach a capitalization of approximately 67,000 million dollars, according to Bloomberg, but other specialized sources calculate it up to 73,000 million dollars. https://www.eleconomista.com.mx/empresas/Empresa-china-de-transporte-DiDi-recauda-4000-millones-de-dolares-en-OPI-de-EU-fuentes-20210629-0091.html
. @DidiGlobal is the world’s leading mobility technology platform. Today they countdown to their IPO #DiDiIPO pic.twitter.com/MhFrFpf44w
– NYSE (@NYSE) June 30, 2021
DiDi was founded in 2012 at the initiative of Wei Cheng , a former Alibaba employee and current CEO, and Jean Qing Liu , a former Goldman banker who now serves as the company’s president. Today it is present in around 4,000 cities in 15 countries, has about 493 million active annual users and 15 million drivers.
The Chinese private transport giant is distinguished by having removed Uber from the Chinese market in 2016, when the former won the price war and led the US to sell its operations in the Asian country. Although this was not so bad, since Uber currently owns 12.8% of the shares of DiDi . The other large shareholder of the Chinese company is SoftBank Vision Fund, with a 21.5% stake.
In 2020, as a result of the Covid-19 pandemic, DiDi reported losses of 1.6 billion dollars , with a reduction of 8.5% in its income to 21.63 billion dollars, according to a document presented to the regulator.
During the first quarter of 2021, DiDi’s revenue grew 105% to 42.163 million yuan (almost 6.53 billion dollars).