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DiDi Global IPO Raises $4 Bn in the US Stock Market

05 August 20224 mins read by Angel One
DiDi Global IPO Raises $4 Bn in the US Stock Market
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The world’s largest and China’s go-to mobility technology platform, DiDi Global Inc. (DIDI), sold approximately 317 million American Depository Shares (ADS) on Wednesday.

Timeline of DiDi stock

  • The company initially priced each of its IPO shares at $14, summing up to a $67 billion market valuation on Tuesday.
  • On Wednesday, DiDi’s shares began trading at $16.65 each.
  • Eventually, its stocks saw a peak rise of 28.6% from their initially marketed price.
  • The same day, its stocks realised a closing value of $14.14 per share, maintaining a 1% spike and a non-diluted market cap of $67.8 billion.

With its remarkable capital raises from recent reports, DiDi’s colossal IPO will be the largest share sale by a Chinese company in the US stock market.

Key takeaways about DiDi Chuxing’s colossal IPO

DiDi Global Inc. is a Chinese app-based company offering shared mobility services. The company was founded by former alumni of Alibaba Group, Will Wei Cheng, in 2021.

It operates across Africa, Australia, Asia, Eastern Europe, and Latin America. It is headquartered in Beijing.

Here are insights into the company’s market performance in recent years –

  • DiDi leads the Chinese ride-hailing service sector with a 90% share.
  • Over the years, it has acquired several of its competitors. The most noteworthy among them was the acquisition of Uber China in 2016.
  • Initially, DiDi’s colossal IPO targeted a valuation of $100 billion. The company later sized down the deal, taking investors’ suggestions into account.

A London-based independent analyst commented that the current IPO valuation and price of DiDi IPO is quite attractive amidst a possibly volatile market condition.

Here’s a sneak peek into DiDi’s financials

DiDi’s colossal IPO is one of the largest seen in the past 10 years. In an attempt to expand its business into global markets, the firm plans to continue investing in technology.

Following is a brief overview of DiDi’s financials in recent times.

  • Given the travel restrictions due to the pandemic, DiDi experienced an 8.4% decline in its 2020 revenue to$21.6 billion.
  • As of 2021’s first quarter, the company reported revenue of $6.4 billion.
  • For the year ended 1 March 2021, DiDi boasted 493 million active users annually.
  • The company’s primary shareholders are Uber Technologies Inc. (12.8%), Tencent (96.8%), and SoftBank Vision Fund (21.5%).

As already mentioned, DiDi has remained a leading player in the mobile transport sector, earning profits of around $30.3 million in this year’s first quarter.

Besides ride-hailing, DiDi also plans to continue its investment in AI and bring out autonomous taxis.

Parting words

Ride-hailing services are seeing increasing demand post easing of Covid-19 restrictions. DiDi’s colossal IPO listing on the stock exchange reflects the same. It will help the company diversify its revenue. At the same time, a percentage of capital raised from the current IPO will aid in spreading its international presence.

Frequently Asked Questions

  1. When did DiDi’s colossal IPO debut in the US stock exchange?

DiDi’s IPO started trading for the first time on 30 June 2021.

  1. What is DiDi’s diluted value?

The diluted value of DiDi Global Inc. is well above $83 billion, taking stock options into account.

  1. What was DiDi’s initial ADS offering?

They previously decided on listing 288 million ADS.

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