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Inside a Beijing ride-sharing vehicle, the Didi app on a smartphone.
Bloomberg/Gilles Sabrie
When Didi Global, China’s Uber, goes public this week, it might be the year’s second-largest initial public offering. According to a prospectus, the Chinese ride-hailing behemoth has registered to offer 288 million American depositary shares at $13 to $14 apiece. One class A ordinary share is made up of four of these shares. If Didi prices at the high end, it might raise as much as $4 billion.
The Beijing company intends to trade under the ticker DIDI on the New York Stock Exchange. Didi is expected to price its deal on Tuesday and begin trading on Wednesday, according to a source familiar with the issue. The company’s worth might exceed $60 billion. Didi’s IPO comes after another hectic week for initial public offerings. At least 16 companies, including Krispy Kreme, are expected to price this week. On Thursday, the doughnut chain is slated to open for business. Didi Global would be the largest IPO in the second quarter, according to Dealogic, with a valuation of $4 billion. It would also be the second-largest event of the year.
Coupang
(ticker: CPNG), which raised $4.6 billion in March, was the year’s largest IPO, according to Dealogic. The Didi deal’s underwriters are Goldman Sachs, Morgan Stanley, and J.P. Morgan. According to the prospectus, Morgan Stanley Investment Management and Temasek Holdings have committed to buy $1.25 billion worth of shares.
Morgan Stanley is a financial services firm based in
According to the filing, (MS), one of the underwriters on the Didi IPO, is buying $750 million, while Temasek, a Singapore state-owned investment firm, is looking to acquire $500 million. Didi, based in Beijing, offers a smartphone app that connects consumers with available automobiles and taxis. According to its prospectus, it works in almost 4,000 cities, counties, and municipalities in 15 countries. As of March 31, it had over 493 million annual active users. Didi is well-known for her ability to successfully push through obstacles.
Uber Technologies is a company that provides transportation services.
(UBER) out of China after losing a bruising price fight and surrendering its business to Didi in exchange for a stake. Because Uber is not selling shares in the IPO, its voting power will reduce from 12.8 percent to 6.4 percent following the offering.
SoftBank Group is a Japanese conglomerate.
(SFTBY), one of Didi’s largest stockholders, has dropped from 21.5 percent to 10.7%, while
Tencent Holdings is a Chinese company.
(TCEHY) has dropped from 6.8% to 3.4 percent. SoftBank and Tencent aren’t selling any of their stock. To contact Luisa Beltran, send an email to luisa.beltran@barrons.com.
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