Chinese ride-hailing giant Didi Chuxing could reportedly go public in the U.S. and is looking at a valuation of at least $100 billion.
It is understood that the company is leaning towards a listing in the New York Stock Exchange (NYSE) as opposed to the Hong Kong stock exchange and had discussed the possibility of listing via a special-purpose acquisition company (SPAC). However, given the valuation of the company, a traditional listing seems more likely.
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It is understood that Didi could raise approximately $10 billion if its sells 10 per cent of its shares. Confidential sources told Reuters that a listing in New York reflects concerns that a listing in Hong Kong could run into regulatory scrutiny over certain Didi business practices, including the use of unlicensed vehicles and part-time drivers. Moreover, choosing the NYSE would also be more predictable and open up a deeper pool of capital.
If Didi is to go public in the U.S., it will be the biggest Chinese IPO in the country since Alibaba’s $25 billion one in 2014. Reuters notes that the company does not have a definitive plan about its listing, but at least one source claims the IPO could occur as early as the second quarter of the year.
Didi was founded in June 2012 and has over 550 million users in countries through Asia, as well as Mexico, Australia, Brazil, Colombia, Chile, Costa Rica, and Russia. It also famously bought out Uber China in August 2016.
