Didi Global IPO on NYSE, Rises 1% on Day 1 with Market Value of $68 Billion
1st July 2021 | Hong Kong
Didi Global, China’s largest ride-hailing service and the world’s largest mobility technology company, has IPO on New York Stock Exchange (NYSE) at the IPO price of $14, rising 1% on Day 1 with a market value of $68 billion (30/6/21, Wed). Didi Global share price opened at $16.65 (+18%), reaching a high of $18.01 (+29%), and a low of $14.10 before closing at $14.14 (+1% of IPO price $14). Didi Global and known as Didi Chuxing in China, was founded in 2012 in Beijing (China), receiving investments from Softbank Vision Fund and Tencent, and in 2016 bought Uber China with Uber becoming a key shareholder (12.8%) of Didi Global. The IPO also created 2 self-made in CEO & founder Will Cheng Wei ($4.4 billion) and President Jean Liu Qing ($1.08 billion).
“ Didi Global IPO on NYSE, Rises 1% on Day 1 with Market Value of $68 Billion “
Didi Chuxing, China’s Largest Ride-Hailing Co.
CEO & founder Will Cheng Wei founded Beijing Orange Technology in 2012 and launched Didi Dache, a taxi-hailing app. In 2015, Didi Dache merged with rival Kuaidi Dache to become Didi Chuxing. In 2016, Didi Chuxing acquired Uber China, with Uber exiting China and become a shareholder of Didi Chuxing with 12.8% shareholding.
Today, Didi Chuxing is China’s largest ride-hailing service and is led by President Jean Liu Qing, CEO & founder Will Cheng Wei and COO Stephen Zhu Jingshi. In 2020, Didi Chuxing reported $21.6 billion in revenue and $1.6 billion in net loss. For the first 3 months of 2021 ending 31st March, Didi Chuxing reported $6.4 billion revenue, net income of $800 million and adjusted EBITA loss of $800 million.
The IPO filing was made under Didi Chuxing formal name, Xiaoju Kuaizhi on the 10th of June 2021. Xiaoju Technology Co., Ltd. was founded in Beijing and launched the DiDi Dache app in June; Kuaizhi Technology Co., Ltd. was founded in Hangzhou and launched the Kuaidi Dache app in May. Both companies provided online taxi-hailing services.
Didi Global Shareholders, New Billionaires Emerge
Didi Global largest institutional shareholders include Softbank Vision Fund (20.2%), Uber (12%) and Tencent (6.4%). Didi Chuxing’s leadership team also owns 8.1% shareholding with CEO & founder Will Cheng Wei owning 6.5% and President Jean Liu Qing owning 1.6%.
At $68 billion valuation, Will Cheng Wei become another self-made billionaire in China with $4.4 billion in share value, and President Jean Liu Qing, who is the daughter Lenovo founder Liu Chuan Zhi, with $1.08 billion in share value.
- Softbank Vision Fund 20.2% – $13.7 billion
- Uber 12% – $8.1 billion
- Tencent 6.4% – $4.3 billion
- Will Cheng Wei 6.5% – $4.4 billion
- Jean Liu Qing 1.6% – $1.08 billion
Uber is listed on New York Stock Exchange (NYSE) and has a market capitalization of $93 billion (30/6/21). In 2018, Didi Chuxing was valued at $56 billion and in 2019, valued at $62 billion in private market.
Xiaoju Technology Co., Ltd. was founded in Beijing and launched the DiDi Dache app in June; Kuaizhi Technology Co., Ltd. was founded in Hangzhou and launched the Kuaidi Dache app in May. Both companies provided online taxi-hailing services.
Didi Global IPO Fast Facts
- IPO Price: $14
- Trading Debut: 30th June 2021
- Open: $16.65 (Day 1)
- High: $18.01 (Day 1)
- Low $14.10 (Day 1)
- Close $14.14 (Day 1)
- Market Value: $68 billion
- Market Value: $73 billion (30 days option for underwriters)
- Raised $4.4 billion
- NYSE Ticker: DIDI
- Stock Exchange: New York Stock Exchange (NYSE)
- New Shares: 316.8 million American Depositary Shares (ADSs)
- Option: 47.52 million additional ADSs at $14.00 (Within 30 days)
The Company has granted the underwriters an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an aggregate of 47.52 million additional ADSs at $14.00 per ADS.
The Underwriters, Book Runners, Co-Managers
The underwriters & book runners are Goldman Sachs, Morgan Stanley and JP Morgan. The joint book runners are Bank of America, Barclays, China Renaissance Securities, China International Capital Corporation (CICC), Citigroup, Guotai Junan, HSBC and UBS.
The co-managers are Bank of China International, BOCOM International, CCB International Capital, CLSA, CMB International Capital, Futu, ICBC, Mizuho Securities and Tiger Brokers.
- 2020 China Private Equity and Venture Capital AUM at $1.04 Trillion, Southeast Asia at $33 Billion
- China Regulator Issues Warning on Stock Market Manipulation, Crackdown on Bitcoin
- HSBC & Nielsen Survey: 82% of China GBA Mainland Investors to Invest in Wealth Management Connect
- United Nations Project Economic Growth in 2021 at 5.4%, China to Grow 8.2%
- Hong Kong Insurance Group FWD Files for US IPO in United States, Valuation Around $13 Billion
- Didi Chuxing IPO Creates 2 New Self-Made Billionaires, Founder Will Cheng Wei with $7 Billion
- China Didi Chuxing Files for IPO in United States, Valuation at $100 Billion
- Grab $39.6 Billion SPAC IPO Delayed to Q4 2021, Pending Accounts Clearance
- JD Logistics IPO in Hong Kong, 3.3% Higher on Day 1 with $32 Billion Market Value
- Indonesia Tech Giants Gojek and Tokopedia Merge to Form GoTo Group, Eyes $35 Billion Future IPO
- UK-Based Deliveroo IPO on London Stock Exchange, Down 26.4% on 1st Day
- Baidu IPO on Hong Kong Exchange, Price Remains Unchanged on Day 1
- South Korea E-Commerce Giant Coupang IPO on NYSE, Rises 41% on Day 1
- Kuaishou IPO Rises 160% on Day 1, Raised $5.32 Billion
- Airbnb IPO Rises 112% on Day 1, Raised $3.5 billion
- DoorDash IPO Rises 85% on Day 1, Raised $3.3 billion
- JD Health IPO Rises 55% on Day 1, Raised $3.4 billion
Caproasia.com | The leading financial website for financial professionals, professional investors and HNW investors. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quicklinks: Caproasia Access | TFC | Caproasia | Jobs