IPO fireworks on display this week

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Axios 28 June, 2021 - 08:14am 21 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

The IPO market is lighting its fireworks a bit early, with a whopping 17 companies planning to list this week on U.S. exchanges.

Driving the news: Chinese ride-hail company Didi is expected to be the week's top float, with plans to raise nearly $4 billion.

By the numbers: This would be the third time in 2021 that U.S. markets saw 17 IPOs, following weeks in February and March, per Renaissance Capital. Before that, however, it hadn't happened since December 2006.

Part of this week's boom is about getting out before the July 4 holiday. Another part is companies trying to price before quarter-end, so they needn't provide another set of financials.

The bottom line: The IPO window isn't just open. The glass has been smashed and the framing has been removed.

Map from a computer model showing temperatures in the lower atmosphere on Monday, June 28, 2021. (World Meteorological Organization)

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Read full article at Axios

Didi IPO: 5 things to know about the ride-hailing giant as it seeks to raise nearly $4 billion

MarketWatch 29 June, 2021 - 12:10pm

The 9-year-old company — which also offers taxi hailing, delivery and more — will list on the New York Stock Exchange under the ticker symbol DIDI.

Here’s a closer look at what the company disclosed in its IPO filing:

Comparisons between the world’s top two ride-hailing companies could become more frequent as Didi goes public in the United States.

In its filing, Didi said it has hundreds of millions of riders in China and operates in 16 countries and nearly 4,000 cities. Besides ride hailing, its new services include intra-city freight, community group buying and food delivery.

In its 2020 annual report, San Francisco-based Uber said that as of Dec. 31, 2020, it operated in 71 countries and about 10,000 cities. Uber offers rides, delivery and freight. Although it unloaded its autonomous-vehicle business last year, it has a partnership with self-driving company Aurora Technologies.

One thing Didi has in common with Uber (and smaller rival Lyft) is that it has also been mostly unprofitable. But it did turn a profit in the first quarter, reporting net income of 5.49 billion rembini ($837 million) on revenue of RMB 42.16 billion ($6.44 billion), up from a loss of RMB 3.97 billion on sales of RMB 20.47 billion the year before. That profit was largely due to its investments.

See: Chinese ride-hailing company Didi files for IPO with something U.S. rivals haven’t offered: profit

After a battle in which Didi and Uber lost a lot of money as they tried to undercut each other in China, Uber sold its Chinese business to Didi for $7 billion in 2016. Uber’s CEO at the time, Travis Kalanick, wrote in a blog post announcing the deal: “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there.”

Uber retained a 12.8% stake in Didi, though, which will be reduced to a 12% stake after the IPO. That’s the second-largest stake in the company behind SoftBank Group’s 21.5% in equity ahead of the IPO. At the midpoint of Didi’s expected selling price, the number of shares Uber holds could be worth about $1.94 billion.

Didi sold all the shares it held in Uber last year for a gain of RMB 2.8 million ($427,417), according to its filing.

Following the trend of many recent IPOs, especially in the tech world, Didi will have a dual-class stock structure. Each Class A share (equal to four ADS) will have one vote, and each Class B share will have 10 votes.

Founder and Chief Executive Will Wei Cheng, co-founder and President Jean Qing Liu and CEO of the international business group Stephen Jingshi Zhu, who all sit on the board, will own all issued and outstanding Class B ordinary shares. These shares will comprise 9.8% of the company’s total issued shares and 52% of the voting power immediately after the public offering. 

Cheng, 38, is also the chairman of the board. The former Alibaba and Alipay manager will have 6.5% equity in the company but 35.5% of the voting power after the IPO.

Cheng brought on Liu two years after he founded Didi. She will have 1.6% equity in the company after the offering.

The other top stakeholder in Didi besides its top executives, SoftBank and Uber is Tencent Holdings, which will have a 6.4% stake post-IPO.

In summer 2018, two female passengers were killed by drivers on Didi’s Hitch platform. “These shook us to our core,” Cheng and Liu wrote in their founders’ letter under a section they called “Our darkest days.”

They said the company changed how it onboarded drivers and expanded background checks, as well as redesigned its technology with safety in mind. Didi also established what it calls a “SWAT team” to respond to safety incidents. In places where it is allowed, the company has installed video cameras in its ride-hailing vehicles.

The changes led to what the company said was “a massive drop in the number of criminal incidents per million rides on our platform as well as significant declines in the number of in-car disputes and traffic accidents.”

The company says that although the number of incidents have gone down, safety remains a risk factor.

Other big risk factors for the company include the Chinese government’s recently stepped-up antitrust crackdown on tech companies, including Didi. In its filing, Didi said that while it has completed a self-inspection and has tried to correct or improve in certain areas, it can’t be sure the government will be satisfied with that.

The company also said government regulators are concerned about driver income, pricing, and fairness to all platform participants, including riders and drivers. Like its biggest competitors, Didi treats its drivers as independent contractors, not employees. “Our business would be adversely affected if drivers were classified as employees, workers or quasi-employees,” Didi said in its filing.

As for how the COVID-19 pandemic has affected and continues to affect Didi’s business, the company said its core platform’s gross transaction value fell 4.8% in 2020 compared with 2019. In China, its mobility business’ GTV decreased 6.6% in the same period, while international GTV actually rose 11.4%. Didi cited increasing coronavirus cases in certain parts of the world as continuing risk factors.

Didi says it has the world’s largest network of electric vehicles on its platform: 1 million, including hybrids, as of the end of last year. Those EVs account for nearly 40% of the electric vehicle miles traveled in China, the company said, citing a study it commissioned. Didi has designed an EV itself, called the D1. It also says it has built China’s largest charging network, with more than 30% market share of total public charging volume in the first quarter of 2021.

As for autonomous vehicles, Didi says it has a team of more than 500 members working on Level 4 AVs for its fleet. The company said self-driving vehicles should help meet what it sees as increasing demand for ride-hailing services.

“The global mobility market is expected to reach $16.4 trillion by 2040, by which time the penetration of shared mobility and electric vehicles is expected to have increased to 23.6% and 29.3%, respectively,” it said in its filing, citing research it commissioned.

The vaccines developed by Pfizer and German partner BioNTech and Moderna using mRNA technology may offer protection against the coronavirus-borne illness COVID-19 for years, according to a new study published Monday.

Krispy Kreme among 17 companies set to IPO in the U.S. this week

Yahoo News 29 June, 2021 - 12:10pm

Driving the news: Chinese ride-hail company Didi is expected to be the week's top float, with plans to raise nearly $4 billion.

Other big issuers should be cybersecurity company SentinelOne, Turkish e-commerce platform D-Market and doughnut chain Krispy Kreme.

Many of this week's companies began prepping their IPOs late last fall.

By the numbers: This would be the third time in 2021 that U.S. markets saw 17 IPOs, following weeks in February and March, per Renaissance Capital. Before that, however, it hadn't happened since December 2006.

Q2 2021 is expected to go down as the busiest quarter for U.S. IPOs since 2000, while June 2021 will be the busiest month since that same year.

Renaissance Capital's Matthew Kennedy emails: "We're all drowning in work! Buy-side, sell-side, lawyers & advisors ... I know the virtual roadshows of some sizable deals are sparsely attended since fund analysts have only so much time. And we've definitely noticed an uptick in prospectus typos."

Part of this week's boom is about getting out before the July 4 holiday. Another part is companies trying to price before quarter-end, so they needn't provide another set of financials.

But a top Wall Street banker tells me not to expect a July lull, with dozens of companies expecting to price. He adds that we should see a slew of new IPO filings over the next week or two.

The bottom line: The IPO window isn't just open. The glass has been smashed and the framing has been removed.

The jobs report for June will give investors a fresh look at the state of hiring in the U.S.

We know what we’re bringing to the barbecue. 🇺🇸

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China’s Didi expected to raise $4 billion in New York IPO

MarketWatch 29 June, 2021 - 12:10pm

The outlook: Didi’s listing, the same week as that of doughnut chain Krispy Kreme, illustrates the renewed vigour of the IPO market as investors try to take advantage of rising markets and generous valuations.

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Didi IPO: China's Uber Is Set to Trade Wednesday. What to Know.

Barron's 29 June, 2021 - 12:10pm

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Didi Global, the Uber of China, could deliver the second-biggest initial public offering of the year when it begins trading this week.

The Chinese ride-hailing behemoth has filed to sell 288 million American depositary shares at $13 to $14 each, a prospectus said. Four such shares represent one class A ordinary share. This means Didi could raise as much as $4 billion if it prices on the high end. 

The Beijing company plans to trade on the New York Stock Exchange under the ticker DIDI. 

Didi is scheduled to price its deal on Tuesday and trade Wednesday, a person familiar with the situation said. The company’s valuation could soar past $60 billion. 

Didi’s offering comes during another busy week for IPOs. At least 16 companies are scheduled to price this week, including Krispy Kreme. The doughnut chain is expected to begin trading on Thursday. 

At $4 billion, Didi Global would take top honors as the largest IPO in the second quarter, Dealogic said. It would also rank second in terms of size for the year. Coupang (ticker: CPNG), which collected about $4.6 billion in March, was the year’s biggest IPO, Dealogic said.

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

Morgan Stanley Investment Management and Temasek Holdings have agreed to buy $1.25 billion worth of shares, the prospectus said. Morgan Stanley (MS), one of the underwriters on the Didi IPO, is buying $750 million, while Temasek, a Singapore state-owned investment company, is looking to scoop up $500 million, the filing said. 

Didi, of Beijing, 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 15 countries, its prospectus said. It had more than 493 million annual active users as of March 31. 

Didi is known for successfully pushing Uber Technologies (UBER) out of China after the U.S. company lost a bruising price war and ended up selling its operations to Didi for a stake. Uber, which is not selling shares in the IPO, will see its percentage of voting power drop to 6.4% from 12.8% after the offering. SoftBank Group (SFTBY), one of Didi’s bigger shareholders, falls to 10.7% from 21.5%, while Tencent Holdings (TCEHY) tumbles to 3.4% from 6.8%. SoftBank and Tencent are also not selling shares.

Write to luisa.beltran@barrons.com

Didi Global, the Uber of China, could deliver the second-biggest initial public offering of the year when it begins trading this week.

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