Breaking Stories

Didi Global to close IPO bookbuild on Monday

Didi Global Inc is reportedly closing the bookbuild for its IPO on Monday, one day early compared to plans.

The Chinese ride-sharing giant had received enough investor demand to meet the targeted price range on Friday.

According to filings published last week, the group is placing American Depositary Shares at US$13-14 each, which would raise US$4bn at the top of the range, potentially making it the largest IPO in New York this year.

It values the tech firm at US$62.4-67.2bn, while competitor Uber Technologies Inc (NYSE:UBER) is valued at US$96.8bn according to the last closing price.

Morgan Stanley has expressed interest in US$750mln worth of shares, while Singapore’s Temasek is eyeing a US$500mln stake.

“Many investors still doubt if Didi can maintain a high growth rate for its core ride-hailing business in China,” a prospective investor told Reuters.

“Its market share is already very high in big cities, which means there is limited room for its future growth.”

“It’s also challenging for the company to expand in lower-tier cities due to increasing competition from rivals, not to mention the potential impact of a regulatory crackdown.”

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published.