China’s ride-hailing app Didi Global raises US$4 billion in United States IPO
- Didi will sell 288 million American Depository Shares (ADS) at US$14 apiece, a source said, giving Didi a valuation of about US$73 billion
- The listing in New York will be the biggest US share sale by a Chinese company since Alibaba raised US$25 billion in 2014
Chinese ride-hailing app Didi Global Inc raised US$4 billion in its US initial public offering (IPO) on Tuesday, pricing it at the top of its indicated range, according to people familiar with the matter.
Didi will sell 288 million American Depository Shares (ADS) at US$14 apiece, the source said. This gives Didi a valuation of about US$73 billion on a fully diluted basis.
The sources asked not to be identified ahead of an official announcement. Didi did not immediately respond to a request for comment.
The listing in New York, which will be the biggest US share sale by a Chinese company since Alibaba raised US$25 billion in 2014, comes on the heels of record IPO activity this year, as companies rush to capture the lucrative valuations seen in the US stock market.
A total of 29 IPOs by Chinese companies in the United States in the first six months of the year raised US$7.6 billion, the highest amount ever for that time period, according to Refinitiv data.
Didi’s IPO was covered early on the first day of the book-build last week and the investor books were closed on Monday, one day ahead of schedule.
The book is covered multiple times by investors, two sources told Reuters on Tuesday.