China’s Didi Chuxing demands $4 billion for listing in New York

Chinese passenger carrier Didi Chuxing has laid out plans to raise up to $4 billion from an initial public offering on the New York Stock Exchange, in what would be one of the largest international listings in years.

The Beijing-based company said it will offer 288 million US depository shares in a price range of $13 to $14, according to an updated prospectus. Each ADS translates to four shares of the company’s Class A stock.

Morgan Stanley and Temasek in Singapore have indicated their interest in buying up to $1.25 billion of the shares pooled in the IPO, or about a third of the total offering in the middle of the price range. Morgan Stanley also serves as a lead insurer on the flotation, and Temasek is Long time investor in Didi.

Didi updated flyer Creates a potential listing in the coming weeks, after a promotion when it will be shown to public investors. The IPO will likely be the largest international listing in the United States since Alibaba raised more than $25 billion when it went public in 2014.

Didi will have a market capitalization of $64.7 billion in the middle of its price range, based on the number of Class A and B shares listed in its prospectus.

Private investors previously valued Didi at $65 billion during a funding round in 2018. A person familiar with the trading said the company’s shares had recently changed hands in private markets below the maximum of its marketed range.

The IPO would boost Didi’s balance sheet as it plans to expand outside its primary market in China and invest in electric vehicles and independent technologies.

Didi recently faced pressure from regulators such as China cracks On the big domestic tech companies, adding uncertainty to the IPO process.

Its management team will retain control of the majority vote after the offering with Class B shares holding 10 votes each.

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