Chinese carpooling giant files an IPO application in the United States – –

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Chinese carpooling giant files an IPO application in the United States – –



The company, which describes itself as the world’s largest mobility platform, offers ridesharing, taxi and ridesharing services in China and other countries, including Brazil and Mexico. Didi is also investing in autonomous driving.

It intends to be listed on either the New York Stock Exchange or the Nasdaq, under the ticker DIDI. The file did not reveal how much the company plans to raise on the IPO.

Didi said it operates in 15 countries, but more than 93% of its sales come from China. It posted a profit of $ 837 million in the first three months of this year after losses in 2018, 2019 and 2020.

Didi’s listing in the United States is notable amid continuing tensions between the United States and China. Many large Chinese tech companies are doing business in New York, including Alibaba (BABA), JD.com (JD) and Pinduo (PDD), but the environment has become much more volatile. Over the past two years, a flurry of Chinese companies that trade on Wall Street have held secondary listings in Hong Kong so they can establish stronger roots closer to home, citing worsening regulatory hurdles.

Despite the tensions, 2020 still saw some $ 12 billion raised by Chinese companies from U.S. listings, according to data provider Refinitiv. Almost $ 5 billion has been raised by Chinese companies so far in 2021, more than triple the amount reached so far last year.
Didi acknowledged the risks in his prospectus, writing that there had been “increased tensions in international economic relations”. He mentioned the U.S.-China trade disputes, Covid-19, and Hong Kong, among others.

“Such tensions between the United States and China, and any escalation thereof, can have a negative impact on the general, economic, political and social conditions in China and, in turn, have a negative impact on our business, financial condition and results of operations. , the company said.

The company also has other concerns. He said his business had been significantly affected by Covid-19 and that the pandemic could continue to impact growth in the future.

“If the situation worsens in China, or if there is no significant recovery in other markets where we operate, our business, results of operations and financial condition could be significantly affected and negative, ”Didi said in his prospectus. .

The widening technological crackdown in China is also of concern. China recently downsized its global tech champions, cracking down on antitrust abuse and undue risk-taking. Didi in his case noted that claims or regulatory actions related to anti-monopoly or other concerns “could expose us to fines, constraints or change in our business practices, damage to our reputation and a significant negative impact ”on finances.

Despite these risks, Didi “could raise around $ 10 billion and aim for a valuation of nearly $ 100 billion,” according to Reuters, citing anonymous sources. That would make it the biggest Chinese bid on Wall Street since Alibaba raised $ 25 billion in 2014. Didi did not immediately respond to a CNN Business request for comment.

Major Didi shareholders include Softbank’s vision fund and Tencent, according to the SEC filing. Uber owns 12.8% of the company, after selling its China business to Didi in a landmark deal in 2016.

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