After its U.S. debut, China’s Didi is worth $69 billion
Didi Global shares ended their first day of U.S. trading a little bit over their public offering price, valued at $68.48 billion in the most prominent U.S. listing since 2014.
The stock market debut justified Didi’s decision in terms of moderating its valuation expectations after investors decided to raise their concerns over the profitability and pace in foreign markets and new services. Reuters reported that Didi thought the IPO might value it at around $100 billion.
Didi’s stock opened at $16.66, which was considered significantly higher than its $15 IPO price. The shares decreased in the early afternoon after reaching a $19 high.
Didi priced the offering of 316.9 million American depositary shares at the upper end of its $14 to $15 range, raising $4.4 billion.
Didi is one of the Chinese companies seeking to capitalize on its valuations of the U.S. stock market. According to Refinitiv data, around 30 Chinese companies raised $7.7 billion in U.S. IPOs in the first five months of the year. It happened despite the current economic tensions between China and the United States.
Details on reports
Reuters reported earlier this month that Chinese authorities investigate Didi over potential antitrust violations.
Studies show that almost all major Chinese internet companies are under much more inspection now than in the past. A principal at Renaissance Capital in Greenwich, Connecticut, Kathleen Smith, said that It’s a risk for this sector.
Didi has a back by Alibaba – technology investment giants, with Tencent and Uber. Cheng Wei as Didi Dache founded in 2012 as a taxi-hailing app. Later, it merged with peer Kuaidi Dache and became Didi Kuaidi which again later renamed Didi Chuxing.
According to Forbes, Chief Executive Cheng, born in a small town in 1983 in the southeastern province of Jiangxi, was worth $1.3 billion prior to Didi’s market debut.
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