China’s Didi Chuxing seeks $4bn in New York listing

Didi Chuxing, the Chinese ride-hailing company, laid out plans to raise as much as $4bn from an initial public offering on the New York Stock Exchange, in what would be one of the largest international listings in years.

The Beijing-based company said it would offer 288m American Depositary Shares at a price range of $13 -$14, according to an updated prospectus. Each ADS translates to four shares of the company’s class A stock.

Morgan Stanley and Singapore’s Temasek have indicated interest in purchasing up to $1.25bn in combined stock in the IPO, or about one-third of the total offering at the middle of the price range. Morgan Stanley is also serving as a lead underwriter on the flotation, and Temasek is a longtime investor in Didi. 

Didi’s updated prospectus sets up a potential listing in the coming weeks, following a roadshow when it will pitch public investors. The IPO is likely to be the largest international listing in the US since Alibaba raised more than $25bn when it went public in 2014.

Didi would have a market capitalisation of $64.7bn at the middle of its price range, based on the number of class A and B shares listed in the prospectus.

Private investors previously valued Didi at $65bn during a round of funding in 2018. The company’s shares have recently changed hands in private markets at less than the top end of its marketed range, said one person familiar with the trades.

The IPO would bolster Didi’s balance sheet as it plots an expansion outside its core market in China and invests in electric vehicles and autonomous technologies.

Didi has recently faced pressure from regulators as China cracks down on large domestic tech companies, adding uncertainty to the IPO process.

Its management team would hold majority voting control following the offering through class B shares carrying 10 votes each.

Weekly newsletter 40a3 401d 9615 6c5efc236c5d

Your crucial guide to the billions being made and lost in the world of Asia Tech. A curated menu of exclusive news, crisp analysis, smart data and the latest tech buzz from the FT and Nikkei

Sign up here with one click

Source link

Good Ads

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please Disable AdBlock