Didi Chuxing seeks US listing of its grocery delivery arm, source says

“Didi Chuxing, a Chinese ride-hailing giant that plans to go public in New York this summer, is already making plans to spin off its newly created grocery delivery service a year or two after the initial public offering,” The Information reported, citing a person familiar with the matter.

Details:

• Didi executives have reportedly told investors that its grocery delivery service Chengxin Youxuan may do US listing between next year and 2023, the source said.
• The terms of the grocery arm’s IPO, such as timing and size, have yet to be finalized, the person added.

Context:

• Talk about the potential spinoff and IPO comes after Didi raised new funding for Chengxin Youxuan, which included a US$1.2 billion commitment from existing backers CITIC Private Equity and angel investor Wang Gang, according to the report.
• Didi secured US$3 billion worth of Chengxin’s convertible bonds as part of the deal.