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

Chinese passenger carrier Didi Chuxing filed for public offering in the United States, revealing the financial damage of the pandemic to its business last year and the strength of its recovery — and paving the way for one of the world’s largest. 2021 listings.

Didi operates the dominant taxi ordering app in China and recently expanded worldwide with money investing in electric vehicles and Self-confident Leadership Research.

Private investors previously valued Didi at $65 billion in the 2018 fundraising round, according to a person familiar with the matter. The company is likely to seek a higher valuation during the public offering.

Depending on the reception of investors, Didi’s listing could rival the Korean e-commerce company Debut in Coupang Market سوق earlier this year, which was the largest US public offering for an international company since Alibaba in 2014.

Didi’s revenue fell 8.5 percent to 141.7 billion renminbi ($22 billion) in 2020, according to filings, as the coronavirus pandemic spread. towed Its core business is in the field of passenger transportation services. Losses ballooned to 10.6 billion renminbi during the same period.

Business rebounded in the first quarter of this year, however, allowing Didi to book RMB 42.2 billion in revenue and net income of RMB 5.5 billion. The company lost money from operations during the quarter but made a profit when the gains from investments were included.

The Beijing-based company said its core business in China has been profitable on an adjusted EBITDA basis since 2019.

Xiaoju Kuaizhi, Didi’s holding company, has submitted US deposit shares on US stock exchanges in an expected list next month. A public debut would be a milestone for the company, which raised billions of dollars from Japan’s SoftBank while battling early Competition from Uber in its local market.

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

Uber owned 12.8 percent of the company after selling its Chinese business to Didi in 2016 largely stock-based transaction.

Didi will enter a hot market for initial public offerings, as well as a Tense geopolitical environment For large Chinese technology companies at home and in the United States.

Last month, the organizers summoned Executives from Didi and nine other transportation and freight service companies to issue warnings about their data and pricing practices. In the filings, Didi said it faced multiple risks related to its Chinese corporate structure and government relations.

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