China Didi Chuxing Files for IPO in United States, Valuation at $100 Billion
11th June 2021 | Hong Kong
Didi Chuxing, China’s largest ride-hailing service, has filed for IPO in the United States in what could value the company at around $100 billion and creating 2 new self-made billionaires in CEO & founder Will Cheng Wei ($7 billion) and President Jean Liu Qing ($1.7 billion). Didi Chuxing was founded in 2012 in Beijing in China, receiving investments from Softbank Vision Fund and Tencent, and in 2016 bought Uber China and with Uber becoming a key shareholder (12.8%) of Didi Chuxing. Uber is listed on New York Stock Exchange (NYSE) and has a market capitalization of $93 billion (11/6/21). In 2018, Didi Chuxing was valued at $56 billion and in 2019, valued at $62 billion in private market. (The IPO terms has yet to be released, which will provide the IPO price range, capital-raise and any further share-dilution).
“ China Didi Chuxing Files for IPO in United States, Valuation at $100 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 Chuxing Shareholders, New Billionaires Emerge
Didi Chuxing largest institutional shareholders include Softbank Vision Fund (21.5%), Uber (12.8%) and Tencent (6.8%). Didi Chuxing’s leadership team also owns 8.7% shareholding with CEO & founder Will Cheng Wei owning 7% and President Jean Liu Qing owning 1.7%.
If at $100 billion valuation, Will Cheng Wei will become another self-made billionaire in China with $7 billion in share value, and President Jean Liu Qing, who is the daughter Lenovo founder Liu Chuan Zhi, will have $1.7 billion in share value.
- Softbank Vision Fund 21.5% – $21.5 billion
- Uber 12.8% – $12.8 billion
- Tencent 6.8% – $6.8 billion
- Will Cheng Wei 7% – $7 billion
- Jean Liu Qing 1.7% – $1.7 billion
Uber is listed on New York Stock Exchange (NYSE) and has a market capitalization of $93 billion (11/6/21). In 2018, Didi Chuxing was valued at $56 billion and in 2019, valued at $62 billion in private market.
The IPO will likely be on either New York Stock Exchange (NYSE) or NASDAQ. The underwriters are Goldman Sachs, Morgan Stanley, JP Morgan and China Renaissance. 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.
Note – Correction of Shareholdings and Valuation
At first release of Didi Chuxing IPO on Caproasia.com, we have mistakenly used data of voting power, instead of equity ownership, in calculating the share value of Will Cheng Wei, Jean Liu Qing, that had increased the value of their shares. We were notified of the error and have amended the hypothetical share value of Will Cheng Wei and Jean Liu Qing. Dependant on the terms of the IPO, Will Cheng Wei and Jean Liu Qing shareholding / equity ownership may also change. Below is the correct equity ownership interests of Will Cheng Wei and Jean Liu Qing.
We apologise for producing the shareholding in error and for affected parties or investors in using this information. We also thank our readers and the party who contacted us for notifying us on the error.
Voting Power
- Will Cheng Wei – 15.4%
- Jean Liu Qing – 6.7%
- Stephen Zhu Jingshi -2.3%
Equity Ownership
- Will Cheng Wei – 7%
- Jean Liu Qing – 1.7%
The around $100 billion valuation of Didi Chuxing is hypothetical and final IPO terms will be dependant on the IPO methodology, investment terms and structure, market conditions, and not withstanding further share-dilution possibilities for the share value of Will Cheng Wei and Jean Liu Qing. The hypothetical $100 billion valuation was derived from a range of $80 billion to $110 billion, based on available analysts reports, previous private market valuation, industry player (Uber), positive sentiments in investing in China and in the largest technology companies.
Related:
- 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
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
