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Chinese ride hailing giant Didi's shares ride over 17% after NYSE listing

Didi Chuxing's stock began trading at $16.65 per share, up by nearly 19 percent of its offering price of $14 per share

June 30, 2021 / 11:14 PM IST

Chinese ride-hailing giant Didi Global Inc's popped over 17 percent higher in their New York Stock Exchange (NYSE) debut on June 30, valuing the SoftBank-backed company at $80 billion.

Didi Chuxing's stock began trading at $16.65 per share, up by nearly 19 percent of its offering price of $14 per share, reported CNBC.

 Didi priced an upsized offering of 316.8 million American Depositary Shares at the upper end of its $13 to $14 range, raising $4.4 billion.

Its listing in New York will be the biggest United States share sale by a Chinese company since Alibaba raised $25 billion in 2014.

Didi’s listing also makes it the latest Chinese firm to tap US capital markets even as tensions between Washington and Beijing continue.

The biggest Chinese listing in the United States so far this year was Full Truck Alliance, often referred to as “Uber for trucks,” which raised $1.6 billion.

Didi, which is also backed by technology investment giants Alibaba, Tencent, and Uber, was founded in 2012 by Cheng Wei as Didi Dache, a taxi-hailing app. It merged with peer Kuaidi Dache and became Didi Kuaidi, later renamed Didi Chuxing.

Didi, the world’s largest mobility-technology platform, went on to buy rival Uber’s China business in 2016 and the San Francisco-based company now holds a 12 percent stake in it.

In 2018, Didi said it would invest $1 billion in its auto services business, part of a larger unit rebranding. It has also invested heavily to expand its core business outside its home market by either pouring money in local partners or launching their services.

It currently operates in 4,000 locations across 16 countries and has more than 490 million annual active users, according to a recent regulatory filing.

first published: Jun 30, 2021 10:46 pm