Chinese carpool files Behemoth Didi Chuxing to be made public
A the new ridesharing giant will soon hit the US stock market, if its ambitious plans come true. DiDi Chuxing, the largest Chinese company in the sector and therefore the equivalent of this country Uber Technologies (NYSE: UBER) or Lyft, has filed for an IPO on Nasdaq or the New York Stock Exchange.
During the relatively early filing, made under the trade name Xiaoju Kuaizhi, DiDi did not specify how many of his US depository shares he would sell in his initial US public offering, or a price range for those securities.
Image source: Getty Images.
He clarified an amount of $ 100 million of total proceeds on file, although that figure is only a placeholder at the moment. A Reuters report on the matter said that “sources familiar with the matter” had previously told the news agency that the company could raise $ 10 billion in the list.
DiDi describes itself as “the world’s largest technological mobility platform”. She is the leader in the carpooling market in her native China and is active in 14 other countries. Largest stake in DiDi – 21.5% – is held by the Vision Fund of the Japanese tech investment vehicle SoftBank. Another Asian tech heavyweight Tencent Holdings holds nearly 7% of the capital, as does Uber (13.8%).
Like Uber and Lyft, DiDi has struggled to turn a profit, although of late his fortunes have improved dramatically as the coronavirus pandemic in Asia recedes.
In 2020, its total revenue fell 8% to the equivalent of $ 21.6 billion, while the net loss was slightly larger than the previous year to $ 1.6 billion. In the first quarter of 2021, however, its revenue more than doubled year-over-year to $ 6.4 billion, while it fell in the dark on bottom line, achieving a profit of $ 30 million.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares and recommends Tencent Holdings. The Motley Fool recommends Softbank Group and Uber Technologies. The Motley Fool has a disclosure policy.
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