Didi Stock Price Rises 20% in IPO. What to Know.


Barron's 30 June, 2021 - 12:33pm 25 views

When is Didi IPO?

When is Didi's IPO date? Didi is expected to begin trading on 30 June 2021 under the ticker 'DIDI'. You can keep track of upcoming IPOs​ that are due to debut on our platform. cmcmarkets.comDidi IPO: How to Trade on Didi's IPO

Is Didi a good stock to 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.” ... Didi shares are expected to start trading on Wednesday on the NYSE under the symbol DIDI. Barron'sBuy Didi Global Stock, Analyst Says. It Began Trading Today.

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Didi Global, the Uber of China, delivered one of the year’s biggest IPOs, raising $4.4 billion. 

On Wednesday, shares of Didi (ticker: DIDI) opened at $16.65, reached a high of $18.01 and then dropped. The stock, during the afternoon, traded dangerously close to its $14 IPO price. If it had fallen below $14, the offering would’ve been considered a broken deal. Didi closed Wednesday at $14.14, up 14 cents from its offer price.

The muted performance came during a busy day for IPOs. Didi was one of 10 companies that opened for trading on Wednesday.

The Chinese ride-hailing behemoth said it sold 316.8 million American depositary shares at $14, the top of its $13-to-$14 price range. Four such shares represent one class A ordinary share. The company announced on Wednesday morning that it had increased the size of the deal; it had planned on offering 288 million shares.

At $14.14 a share, Didi’s valuation stood at $73.5 billion on a fully diluted basis.

SentinelOne (S), the AI-powered cybersecurity platform, also began trading Wednesday. The stock kicked off at $46 and ended at $42.50, up 21% from the offer price.

On Tuesday, SentinelOne collected $1.2 billion after selling 35 million shares at $35 each, above its expected price range. SentinelOne had filed to offer 32 million shares at $26 to $29 each, which it boosted to $31 to $32 a share on Monday.

Goldman Sachs, Morgan Stanley, and J.P. Morgan are the underwriters on the Didi offering.

Didi provides a smartphone app that lets users connect with vehicles and taxis for hire. Founded in 2012, it operates in nearly 4,000 cities, counties, and towns across 16 countries, its prospectus said. It had more than 493 million annual active users as of March 31. 

At $4.4 billion, Didi is the year’s second-biggest IPO. Coupang (CPNG), which collected about $4.6 billion in March, remains the year’s largest IPO, Dealogic said.

Write to luisa.beltran@barrons.com

Didi Global, the Uber of China, delivered one of the year’s biggest IPOs, raising $4.

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Didi shares pare off initial double-digit gains in IPO

CNBC 30 June, 2021 - 04:57pm

Shares of Didi Chuxing closed up a modest 1% Wednesday afternoon after spiking as much as 28.6% in the Chinese ride-hailing giant's market debut.

The company's stock began trading at $16.65 per share, up about 19% from the company's offering price of $14 per share, bringing its market cap to nearly $80 billion. It closed at $14.14 apiece, with a market cap of about $67.8 billion.

Didi was most recently valued at $62 billion following an August fundraising round, according to PitchBook data. The valuation as of Wednesday's first trade is more muted than the $100 billion that some had predicted. Still, it ranks among the largest U.S. IPOs over the past decade.

Didi closing in the green bucks the trend of rideshare giants closing below their first trade price. The company's American counterparts, Uber and Lyft, both closed below the initial trade in their 2019 debuts. Lyft began trading at $87.24 and closed the day at $78.29, while Uber opened at $42 apiece and dipped to $41.57.

Didi's listing on the New York Stock Exchange comes as demand for ride-hailing services shoots back up in tandem with falling Covid-19 cases and a roll out of vaccines. Uber and Lyft also have both said they'll be profitable on an adjusted basis by the end of this year, thanks to the recovery.

The offering also represents a financial win for Uber, which owns 12.8% of the shares in Didi after it acquired Uber's China business. SoftBank's Vision Fund holds 21.5%. Apple also invested $1 billion in Didi in 2016.

Didi reported a comprehensive loss of $2.54 billion on $21.63 billion in revenue last year, but turned a slight profit of $95 million on revenue of $6.44 billion in the first quarter of 2021. (Some of the company's profitability in Q1 can be credited to gains on investments of $1.9 billion related to spin-offs and divestments.)

In comparison, Uber lost $6.77 billion on $11.14 billion in revenue last year, and lost $108 million on revenues of $2.90 billion in the first quarter of 2021.

Between 2019 and 2020, Didi's revenue shrunk almost 10% as the Covid pandemic struck China hard last year. However, prior to the pandemic, revenue grew 11% between 2018 and 2019. Additionally, revenue has bounced back in the first quarter as the pandemic recovery is in full swing, with 107% growth in Q1 from the previous year's quarter.

Didi, which was founded in 2012, said in its IPO prospectus that it has 493 million annual active riders, and 41 million average daily transactions. It began expanding internationally in 2018, and the company now operates in 14 countries outside of China, with Brazil and Mexico being the largest contributors, according to a Loop research note from earlier this month. Part of the proceeds raised from the IPO will also go to growing its presence in international markets.

In addition to traditional ride-hailing, Didi is heavily invested in making autonomous taxis a reality. The company recently got approval to test self-driving vehicles in Beijing.

Didi is also facing an antitrust probe into some of the largest Chinese companies. China's market regulator, the State Administration for Market Regulation, is investigating whether Didi used any competitive practices that unfairly pushed out smaller competitors, Reuters reported. It's also reportedly looking into the company's pricing mechanism.

Didi had warned in its IPO prospectus that it met with regulators earlier this year. The ride-hailing company warned they might be subject to penalties, as regulatory bodies might not be satisfied with the inspection results.

"We 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 with respect to any violations of anti-monopoly, anti-unfair competition, pricing, advertisement, privacy protection, food safety, product quality, tax and other related laws and regulations. We expect that these areas will receive greater and continued attention and scrutiny from regulators and the general public going forward," the company said in its prospectus.

Didi was joined by a slew of other companies going public Wednesday, including biometrics screening company CLEAR, digital ad firm Taboola and cybersecurity company SentinelOne.

Didi, a four-time CNBC Disruptor 50 company, ranked No. 5 on this year's list.

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Chinese ride-hailing giant Didi begins trading on the NYSE

CNBC Television 30 June, 2021 - 04:57pm

Didi debut hands tip to Uber

Reuters 30 June, 2021 - 02:06pm

LONDON, June 30 (Reuters Breakingviews) - With the S&P 500 Index hovering near a record high as the quarter ends, it’s only fitting Didi Global’s (DIDI.N) initial public offering should deliver a first-day pop. Its U.S. depositary shares opened on Wednesday up nearly 20% from the $14 IPO price set the day before. That gave the Chinese ride-hailing giant a market capitalisation of around $80 billion read more . Headwinds including an antitrust probe at home – where almost all Didi’s business is done, despite the new “Global” in the name – may explain why much of that gain later slipped away.

The debut still handed a tip to Didi’s U.S. counterpart, the $95 billion Uber Technologies (UBER.N). As part of a wise 2016 decision to stop trying to compete in China, Uber took what’s now a 12% stake in Didi. That was already worth $8 billion at the IPO price. Wednesday’s action added to that.

It’s hard to justify Didi’s current worth using the same valuation multiple investors attribute to Uber’s revenue, even allowing for growth read more . IPO investors will not be complaining, though. A rising stock-market tide lifts all boats. (By Richard Beales)

On Twitter http://twitter.com/breakingviews

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