Didi Global Inc., the Beijing-based ride-hailing company, is targeting a valuation of $62 billion to $67 billion in its IPO, according to its latest public filing.
The fully diluted valuation, which typically includes restricted stock units, could eclipse $70 billion, people familiar with the matter told The Wall Street Journal.
Didi is looking to raise $3.9 billion in the initial public offering by selling 288 million American depositary shares, assuming they price at the midpoint of its targeted range of $13 to $14 per ADS, the filing said.
Didi, which recently changed its corporate name, has said it would use the money it raises to invest in technology, grow its business outside of China and introduce new products.
Much like Uber Technologies Inc. UBER 0.61% in the U.S., China’s Didi operates a smartphone app where users can hail rides, regular taxis and carpooling services. Didi is known for successfully pushing Uber out of China, winning a harsh price war that ended in 2016 when Uber merged its China unit with Didi in exchange for a stake in Didi.
Didi plans to list its American depositary shares on the New York Stock Exchange under the symbol DIDI.
Didi is expected to be one of the most hotly anticipated IPOs in a banner year for them. Traditional U.S.-listed IPOs have raised more than $70 billion already this year, according to Dealogic. Fund managers, venture capitalists, bankers and lawyers have said they are busier with IPOs than they have been in decades at this time of year, which is usually quieter. Some say business is even crazier than during the dot-com boom of the late 1990s.
For the full year 2020, Didi posted revenue of 141.74 billion Chinese yuan, equivalent to $21.63 billion, down 8.4% from a year ago as the coronavirus pandemic cut into business. It posted a full-year net loss of 10.68 billion yuan, equivalent to $1.63 billion.
Didi was founded in 2012 by Alibaba Group Holding Ltd. BABA 1.64% alumnus Cheng Wei, and it merged with a rival in 2015 to gain scale. Mr. Cheng owns 7% of the company’s shares and controls 15.4% of its voting power before the IPO, according to the filing.
Other high-profile investors in Didi include SoftBank Group Corp. 9984 2.26% , Uber and Tencent Holdings Ltd. TCEHY 0.77% entities.
Write to Corrie Driebusch at [email protected]
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