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Summary
- The Chinese ride-hailing giant plans to raise up to US$4 billion by selling 288 million ADSs.
- DiDi operates in 16 countries and has over 493 million annual active users on its platform.
- The Beijing-based company reported revenue of US$21.63 billion in 2020
Chinese ride-hailing giant DiDi Global Inc. plans to become public on the New York Stock Exchange through an initial public offering and raise up to US$4.03 billion.
The company will sell 288 million American Depositary Shares at a price between US$13 and US$14. At the lower end of the price range, Didi would raise US$3.88 billion.
DiDi plans to trade on NYSE under the symbol "DIDI" and reportedly targets a valuation of up to US$67.2 billion in the offering
Goldman Sachs (Asia) L.L.C., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the representatives of the underwriters for the offering.
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What does DiDi do?
DiDi is one of the largest ride-hailing companies in the world. The Beijing-based company provides services including ride-hailing, taxi-hailing, chauffeur, hitch and other forms of shared mobility.
DiDi had over one million electric vehicles on its platform at the end of 2020. It has also built electric vehicle charging network in China. The company also developed D1, an electric vehicle custom-built for shared mobility.
It operates in 16 countries and had 493 million annual active users on its platform globally as of March 31. DiDi is developing Level 4 autonomous driving technology and has a fleet of over 100 autonomous vehicles.
In addition, DiDi has minority investments in other mobility companies Grab Holdings and Lyft Inc. (NASDAQ:LYFT). In 2016, Didi acquired Uber Technologies Inc. (NYSE:UBER)’s business in China.
DiDi’s principal shareholders include Softbank Vision Fund, Uber and Tecent.
READ MORE: Grab To Go Public in US via US$39.6-Billion SPAC Merger
Source: Pixabay
Financials
During the full year ended Dec. 31, DiDi generated revenue of 141.74 billion Chinese yuan, or US$21.63 billion, down from its 154.79 billion yuan in 2019. Of the total revenue, 133.64 billion yuan came from its mobility business in China.
The company reported a net loss of 10.61 billion yuan, or US$1.62 billion during the year, compared with 9.73 billion yuan in the previous year. Total cost and expenses came in at 155.52 billion yuan, or US$23.74 billion.
Meanwhile, DiDi’s total revenues in the first quarter ended March 31 more than doubled to 42.16 billion yuan, or US$6.43 billion.
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The company posted a net income of 5.48 billion yuan, or US$837 million, against a net loss of 3.97 billion in the year-ago quarter.
Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.
