Bloomberg
Didi accelerates IPO plans, valued at more than $ 62 billion
(Bloomberg) – The Chinese giant Didi Chuxing Technology Co. accelerates plans for an initial public offering to capitalize already in the next quarter from a turnaround to pandemic, people familiar with his plans said. Didi, the largest investment In SoftBank Group Corp’s portfolio, a valuation higher than the $ 62 billion it secured during its last round of financing, people said, asking not to be identified to discuss an internal matter . The company increased plans from a previous target of late 2021 after the Uber-like car company bounced back with China’s success in bringing Covid-19 under control. Based on an overall 15% fleet for mega-exchange in Hong Kong, one potential one place, Didi could raise about $ 9 billion in one of the biggest technology debuts worldwide. The person did not make a final decision on the listing location. Didi’s plans remain tentative, and the timing may still depend on negotiations until later in the year. Marketing will offer a remarkable turnaround for a company that first regulators and then Covid 19. hopes to use the same enthusiasm of investors technology debuts this year from China’s video service Kuaishou Technology to the South Korean pioneer for e- trade, Coupang Inc. “Didi wants to capitalize on the red-hot market for IPOs in China,” said Brock Silvers, chief investment officer of private equity in Hong Kong. finance Kaiyuan Capital. Read more: Chinese Ride-Sharing giant Didi plans to have access to Europe Didi’s president Jean Liu said last year that the company’s core business had already started making small profits. The people said daily rides and income exceeded pre-pandemic levels and are now at record highs. “Didi does not comment on the speculation of the market and does not have a definite IPO plan or timeline,” the company said in a statement. The company is looking for capital to expand into online trading and to make a major foray into Europe, where it will have to compete with Uber Technologies Inc. Didi, which remains the dominant player in China despite competition from people like Dida Inc., also wants to take advantage of expanding into adjacent arenas from autonomous driving to electric vehicles. Kong listing last year. “The barely profitable company believes that a market that senses the end of Covid is supportive, but that there may be red flags” in its costly overseas and business expansions, Silvers said. Read more: Didi is said to be close to raising $ 1.5 million for truck unit Founded by Cheng Wei, a former employee of Alibaba Group Holding Ltd., Didi clashed with Uber in China for years until its US competitor in 2016 retired and sold his business in the country to his local sales. rival. Didi acquired an almost monopoly, but then received a series of blows in his business and reputation. In 2018, a number of murders committed by contracted drivers launched an investigation into his ability to police an extensive network used by hundreds of millions. The stock is trading at a 40% discount to its last valuation – even before the pandemic broke out and hampered its business. The shares trade in the secondary market at around $ 43 to $ 49 per share, just below the $ 51 that SoftBank bought. One of the people said before the government inquiry. Supported by Tencent Holdings Ltd. Didi now works in 14 countries outside his home base, mostly in Latin America. In August, it began offering car assistance services in Russia, which was the first direct expiration in Europe, and it is already an investor in the Bolt Technology OU in Estonia, the mainland’s biggest competitor against Uber. Didi will also compete against apps like Gett Inc., Ola and BlaBlaCar, and its debut will give another triumph to SoftBank and founder Masayoshi Son, who has benefited from a number of notable debuts in recent months, including Coupang and DoorDash Inc. The Japanese billionaire has made the cornerstone of his startup portfolio, investing more than $ 20 billion in Uber, Didi, Grab in Southeast Asia and Ola in India. Uber, where SoftBank is the largest shareholder, is an example of how investor sentiment has changed in recent years. The American giant dropped its shares early last year, but they have risen several times since then over the prospect of an economic recovery. Son, who has drawn heavy criticism on investment bets such as WeWork, has benefited from the recovery in the market and is riding a wave of IPOs from his portfolio. Chinese social media giant ByteDance Ltd., estimated at $ 180 billion, and Tokopedia of Indonesia, still exist. Read more: Sun from SoftBank is ready for another IPO windfall in 2021 Sun invests more than $ 10 billion in Didi, according to one of the people. The Chinese startup will not have the kind of returns SoftBank of Coupang or DoorDash saw. But any return on the Didi investment is likely to be a relief after its prolonged struggle (updates with the analyst’s comments from the 9th paragraph). Visit us at bloomberg.com for more articles like this. Sign up now to stay ahead of the most trusted business news source. © 2021 Bloomberg LP