Didi propels Chinese IPOs to record capital raising in the US

Business

South China Morning Post 01 July, 2021 - 04:22pm 7 views

When is Didi IPO?

DiDi Global is an app-based ride-hailing services company. It will make its public debut on the NYSE on June 30 at a price of $14 a share. InvestopediaDiDi Global (DIDI) IPO: What You Need To Know

Is Didi stock a good buy?

In a research note, Xiao said Didi has a secure position, dominating the Chinese ride-sharing market, with a share of more than 80%, multiple years of growth, and “best-in-class margins.” The continuing recovery from the Covid-19 pandemic should benefit the company in the near term, she said. Barron'sBuy Didi Global Stock, Analyst Says. It Began Trading Today.

The stock gained 16% to close out the session at $16.40 apiece. On Wednesday, the stock opened at $16.65 per share in its debut on the U.S. exchange, but pared gains to end at $14.14 per share, or just 1% above the initial public offering price. 

Didi priced its IPO Tuesday evening at $14 a share, giving the company a fully diluted valuation north of $67 billion. The firm raised $4.4 billion through the offering, in the largest IPO of a Chinese company in the U.S. since Alibaba's (BABA) $25 billion listing in 2014.

The modest move higher in the stock's first day of trading belied the anticipation surrounding Didi's IPO in the months leading up to it. The company has matured into a tech behemoth in China, edging out Uber (UBER) and becoming by far the biggest ride-hailing player in the world's second-largest economy. Uber sold its Chinese business to the company in 2016 and still retains a stake in Didi. Didi has also won the backing of major investors including SoftBank and Tencent. And it has also redoubled its efforts in building out electric and autonomous vehicles to add to its core ride-hailing efforts.

"I think it underscores two things: Ride-hailing as a sector is really turbulent. The path toward profitability remains unclear," Howard Yu, IMD Business School professor of management and innovation, told Yahoo Finance of the stock's public debut. "And in the case of Didi, no doubt is it the king in ride-hailing in China, and yet the politics behind [it] and the increased scrutiny of tech giants in China casts a long shadow to a very promising company." 

Like other companies including Alibaba, Didi has been subject to the Chinese government's crackdown of domestic technology giants. Concerns over antitrust violations and monopolistic behavior have been at the core of the clampdown. In its prospectus to go public, Didi acknowledged meeting with China’s market regulators earlier this year and wrote that it "cannot assure you that the regulatory authorities will be satisfied with our self-inspection results or that we will not be subject to any penalty.”

And as a Chinese company, Didi also faces regulatory concerns in the U.S. Both chambers of Congress have recently passed legislation requiring that foreign companies have their financials audited to ensure compliance — a move China's government has contended. Firms that fail to comply could face delisting from U.S. exchanges.

Didi's financial results have also fluctuated over the past several years, with the pandemic weighing on what had been an upward trend in growth. Revenues were 141.7 billion yuan, or $21.6 billion, in 2020, compared to 154.8 billion yuan, or nearly $24 billion, in 2019. Net losses widened to 10.6 billion yuan, or $1.6 billion, in 2020 from 9.7 billion yuan, or about $1.5 billion, in 2019. 

"Just because you build a platform business — although they're very hot — doesn't mean that all platforms can be as profitable as Google or Facebook and all that," Yu added. "By definition, ride-hailing or ride-sharing is a local business, and that played out in the case of Didi. They're very big in China, but elsewhere, they're not that successful." 

Still, Didi operates across 15 countries and in a total of about 4,000 cities, counties and towns, and has cited a $3.9 trillion mobility market opportunity by 2040 in China alone. Average daily transactions totaled 41 million in the 12 months ended in March 2021, and a total of 493 million annual active users were on the platform over that period.

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Shares of Chinese ride-hailing giant Didi Global began trading on the New York Stock Exchange, kicking off what is set to be a busy summer of initial public offerings on the U.S. exchanges.

In this article we will take a look at the 10 best stocks to buy according to billionaire Zhang Lei, who was an early investor in DiDi Global Inc – ADR (NYSE: DIDI). If you want to skip our detailed analysis of Zhang Lei’s history and hedge fund performance, go directly to the 5 Best […]

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(Bloomberg) -- Five years ago, Uber Technologies Inc. bowed out of the world’s second-largest economy by selling its China business to rival DiDi Global Inc. in exchange for a stake in the company. Now, the U.S. ride-hailing company is cashing in on its trade.Didi, the biggest ride-hailing company in China, raised about $4.4 billion in its U.S. initial public offering on Tuesday and sold more shares than it originally planned. Didi’s stock closed up 1% at $14.14 on Wednesday, giving the company

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The bull market in stocks has prompted many companies to ponder initial public offerings. Plenty of those companies have never before had their shares listed on stock exchanges, but as investors were reminded on Thursday, the list of recent IPOs also includes companies that used to be publicly traded but had gone private before deciding to return to exchanges. Below, we'll talk more about what happened to this IPO stock and what it means for the future.

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(Reuters) -Didi Global Inc shares ended their first day of U.S. trading slightly over their initial public offering (IPO) price, valuing the ride-hailing giant at $68.49 billion in the biggest U.S. listing by a Chinese company since 2014. The stock market debut vindicated Didi's decision to moderate its valuation expectations, after investors raised concerns over the pace and profitability of its expansion in new services and foreign markets. Reuters reported in March that Didi was hoping the IPO could value it at as much as $100 billion.

(Bloomberg) -- Chinese ride-hailing giant Didi Global Inc. has raised about $4.4 billion after pricing its U.S. initial public offering at the top of a marketed range and selling more shares, according to people familiar with the matter.Didi sold about 317 million American depositary shares in the offering, around 10% more than originally planned, based on an updated filing on Tuesday. The company priced the shares at $14 each after marketing them for $13 to $14, the people said, who asked not t

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Read full article at South China Morning Post

Chinese Ride-Hailing Giant Didi Goes Public

Bloomberg Technology 02 July, 2021 - 11:21pm

What Didi's muted open signals about investor interest

CNBC Television 02 July, 2021 - 11:21pm

How do ride-hailing giants Didi and Uber compare?

Reuters.com 02 July, 2021 - 11:21pm

When the ride-hailing giant went public on June 30, it was the biggest U.S. IPO for a Chinese company in seven years. But how does it compare to fellow industry heavyweight Uber? Francesca Lynagh reports.

Uber Cashes In On DiDi's IPO

OilPrice.com 02 July, 2021 - 11:21pm

Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com, 

Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com, 

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Ride-Hailing Giant Didi Ends U.S. Debut 1% Above IPO Price

Bloomberg Technology 02 July, 2021 - 11:19pm

Didi Shares Tests $75 Billion Value Mark After Uneven IPO Debut

TheStreet 01 July, 2021 - 07:51am

Didi, which had more than double the revenues of Uber Technologies  (UBER) - Get Report last year, and plans to have 800 million monthly active users by 2022, ended its first day of trading at just over $14 per share -- its IPO price -- following the biggest listing for a China based company in seven years. 

Didi raised $4.4 billion through the sale of 317 million ADRs in its much-anticipated offering, around 30 million more than originally planned, with shares trading as high as $18 each during the listing's early peak.

Asia-based tech giants SoftBank  (SFTBY) , Tencent  (TCEHY)  and Alibaba  (BABA) - Get Report are among Didi's main backers, while the company itself if formally known as Xiaoju Kuaizhi Inc. Uber, which was essentially forced out of the China market after it failed to take on Didi's meteoric rise, took a stake in the group in 2016 when it merged its unit with its Beijing based rival. 

Nearly 30 China based firms have raised more than $7.6 billion in U.S. listing so far this year, compared to the $12 billion tally recorded over the whole of 2020.

A recent study by the Rhodium Group noted that U.S. holdings of Chinese securities was pegged at just under $1.2 trillion at the end of last year, forming a crucial component of that country's corporate fundraising.

Bike sharing group Hello Inc., cloud computing group Qiniu and the podcaster Ximalaya all postponed U.S. listing plans earlier this, but could bring back their respective roadshows if the Didi IPO is a success.

Didi Shares Tests $75 Billion Value Mark After Uneven IPO Debut

TheStreet 01 July, 2021 - 07:51am

Didi, which had more than double the revenues of Uber Technologies  (UBER) - Get Report last year, and plans to have 800 million monthly active users by 2022, ended its first day of trading at just over $14 per share -- its IPO price -- following the biggest listing for a China based company in seven years. 

Didi raised $4.4 billion through the sale of 317 million ADRs in its much-anticipated offering, around 30 million more than originally planned, with shares trading as high as $18 each during the listing's early peak.

Asia-based tech giants SoftBank  (SFTBY) , Tencent  (TCEHY)  and Alibaba  (BABA) - Get Report are among Didi's main backers, while the company itself if formally known as Xiaoju Kuaizhi Inc. Uber, which was essentially forced out of the China market after it failed to take on Didi's meteoric rise, took a stake in the group in 2016 when it merged its unit with its Beijing based rival. 

Nearly 30 China based firms have raised more than $7.6 billion in U.S. listing so far this year, compared to the $12 billion tally recorded over the whole of 2020.

A recent study by the Rhodium Group noted that U.S. holdings of Chinese securities was pegged at just under $1.2 trillion at the end of last year, forming a crucial component of that country's corporate fundraising.

Bike sharing group Hello Inc., cloud computing group Qiniu and the podcaster Ximalaya all postponed U.S. listing plans earlier this, but could bring back their respective roadshows if the Didi IPO is a success.

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