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

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Chinese ride-hailing company Didi Chuxing plans to raise up to US$4 billion through an initial public offering on the New York Stock Exchange, which will be one of the largest international listings in years.

According to the latest news, the Beijing-based company stated that it will issue 288 million American depositary shares at a price range of US$13 to US$14. Prospectus. Each ADS is converted into four shares of the company’s Class A stock.

Morgan Stanley and Singapore’s Temasek have expressed interest in buying up to US$1.25 billion in combined shares in the IPO, which is about one-third of the midpoint of the offering price range. Morgan Stanley also served as the lead underwriter of the IPO, and Temasek was the lead underwriter of the IPO. Long-term investor Didi.

After the roadshow, Didi’s updated prospectus will be ready to go public in the next few weeks, when it will be marketed to public investors. This IPO may be the largest international listing in the United States since Alibaba raised more than US$25 billion since its listing in 2014.

Based on the number of Class A and Class B stocks listed in the prospectus, Didi’s market value is $64.7 billion in the middle of its price range.

A person familiar with the matter said that private investors previously valued Didi at $65 billion in a 2018 round of financing. The company’s stock has recently changed hands in the private market, at a price below the high end of its listing range.

The IPO will strengthen Didi’s balance sheet as it plans to expand outside of China’s core markets and invest in electric vehicles and autonomous driving technology.

Didi recently Under pressure As China cracks down on large domestic technology companies, it adds uncertainty to the IPO process.

Its management team will hold majority voting control through Class B shares after the issuance, with 10 votes per share.

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