Didi Stock Surged, but Fell Back, in Week’s Biggest IPO

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During a pilot test drive on Shanghai streets, a Didi Chuxing driverless cab.

Getty Images/AFP/Hector Retamal

Didi Global is a company that is based in China.

The Chinese Uber raised $4.4 billion in one of the year’s largest IPOs. Didi (ticker: DIDI) began at $16.65 on Wednesday, reached a high of $18.01, and then fell. During the afternoon, the stock was trading perilously near to its $14 IPO price. The offering would have been branded a sham if it had dropped below $14. Didi ended at $14.14 on Wednesday, up 14 cents from its initial public offering price.

The lackluster performance occurred on an IPO-heavy day. On Wednesday, Didi was one of ten businesses that began trading. The Chinese ride-hailing company said it sold 316.8 million American depositary shares at $14, the top of a pricing range of $13 to $14. One class A ordinary share is made up of four of these shares. On Wednesday morning, the business announced that it had upped the size of the purchase from 288 million shares to 388 million shares. Didi was valued at $73.5 billion on a fully diluted basis at $14.14 per share.

More about Didi and Initial Public Offerings (IPOs)

SentinelOne

(S), a cybersecurity platform backed by artificial intelligence, began trading on Wednesday as well. The shares began trading at $46 and closed at $42.50, a gain of 21% above the offer price. SentinelOne made a $1.2 billion profit on Tuesday after selling 35 million shares at $35 each, well above its estimated price range. SentinelOne had filed to sell 32 million shares for $26 to $29 each, but on Monday it raised the price to $31 to $32. The Didi offering’s underwriters are Goldman Sachs, Morgan Stanley, and J.P. Morgan. Didi is a smartphone software that connects people to available vehicles and taxis. According to its prospectus, it works in almost 4,000 cities, counties, and villages in 16 countries. As of March 31, it had over 493 million annual active users. Didi is the year’s second-largest IPO, with a valuation of $4.4 billion. According to Dealogic, Coupang (CPNG), which raised $4.6 billion in March, is still the year’s largest IPO. To contact Luisa Beltran, send an email to luisa.beltran@barrons.com./nRead More