Exclusive | Didi’s financing plans may slow as it eyes IPO in 2019
Meituan-Dianping and Didi Chuxing are two of China’s most valuable unicorns and both are eyeing Hong Kong initial public offerings
Didi Chuxing, China’s ride hailing giant, may be slowing down its plan to raise funds and could be considering an IPO in the second half of next year partly because the need for fresh financing has been less pressing, according to people familiar with the situation.
Earlier this year, Didi was actively seeking to raise fresh capital by issuing US dollar convertible bonds, a type of debt security that can be converted into stock, but Didi is now slowing down its fundraising moves partly because competitor Meituan Dianping has also been easing back on the expansion of its ride hailing business, said the people familiar, who declined to be identified because the information is private.
Financing plans are fluid though and can change on market conditions, the people familiar said. A Didi spokeswoman declined to comment.
Meituan Dianping, China’s largest provider of on-demand online services, and Didi Chuxing are two of China’s most valuable unicorns, with valuations of US$30 billion and US$56 billion respectively based on their latest venture capital fundraising rounds last year. Last month, Meituan filed an application for an IPO in Hong Kong.