China’s Didi raises $4.4 billion in upsized US IPO, say sources

According to the persons, Didi sold 317 million American Depository Shares (ADS) at $14 each, versus the anticipated 288 million, ahead of an official announcement.

According to a couple of roots familiar with the matter, Chinese ride-hailing company Didi Global Inc raised $4.4 billion in its U.S. IPO on Tuesday, pricing it at the top of its indicated range and increasing the number of shares sold. According to these characters, Didi sold 317 million American Depository Shares (ADS) at $14 each, versus some anticipated 288 million, ahead of an official announcement.

On a completely diluted basis, this would value Didi at over $73 billion. It will be worth $67.5 billion if it is not diluted. On June 30, the company is slated to make its debut on the New York Stock Exchange.
According to each separate reference with personal knowledge of the situation, investors could expect their orders to be scaled down once allocations are finished on Wednesday. An attempt for comment from Didi went unanswered.
The IPO, which will be the largest U.S. share sale by a Chinese business since Alibaba raised $25 billion in 2014, comes amid a surge in IPO activity this year as companies scramble to take advantage of the stock market’s good valuations. According to Reuters, Didi’s IPO is more conservative than the company’s initial goal of a $100 billion valuation. During investor briefings before the IPO’s launch, the deal’s size was reduced.
Last week, Didi’s IPO was covered early on the first day of the book-build, and the investor books were closed a day ahead of schedule on Monday. An over-allotment right, also recognized as a greenshoe, allows for the sale of an additional 43.2 million shares to raise the deal size.

Cheng was joined by Jean Qing Liu, the current president of the ride-sharing startup and a former Goldman Sachs banker. SoftBank, Uber Technologies Inc, and Tencent are among the company’s major sponsors. Didi is also recognized for successfully driving Uber out of the Chinese market after the latter lost a price war and was forced to sell its China operations to Didi in exchange for a stake.

According to a governing filing, the firm lost $1.6 billion last year and saw an 8% reduction in revenue to $21.63 billion as activity slowed during the pandemic.