Chinese ride-hailing firm Didi Chuxing plans to raise $4b in US IPO

Chinese ride-hailing giant Didi Chuxing plans to raise up to US$4 billion in its US initial public offering, a deal that may push its valuation to US$67 billion.

In a regulatory filing submitted to the US Securities and Exchange Commission, the company wants to sell 288 million American depository shares (ADS) at a price between US$13 and US$14 per share. The number of shares can increase to 331.2 million if the underwriters exercise their full overallotment option. Four ADSs represent one class A ordinary share.

Didi posted a 141.7 billion yuan (around US$21.9 billion) revenue in 2020, a decrease from 154.8 billion yuan (around US$23.9 billion) in the previous year. Its net loss also widened from 9.7 billion yuan (around US$1.5 billion) in 2019 to 10.6 billion yuan (US$1.6 billion) in 2020.

The company wants to use the earnings from the IPO to grow its presence in selected international markets outside China, introduce new products, and invest in technology such as shared mobility, electric vehicles, and autonomous driving.

A report says that Didi will spin off its newly created grocery delivery service after the IPO. Named Chenxin Youxuan, the grocery arm may also register for an IPO between next year and 2023.

Currency converted from Chinese yuan to US dollar: US$1 = 6.46 yuan