Another Chinese company has decided to go public, seeking to capitalize on the frothy valuations of the US stock market. Didi, a giant ride-hailing company, is planning to file for an initial public offering in the United States with the Securities and Exchange Commission.
However, such a statement by China's company does not guarantee a real listing as it can be halted by the country's government. The exact date for its initial public offering is still unknown. Moreover, the stock exchange on which it will take place is not specified in the application. According to experts, Didi may list its shares on the New York Stock Exchange (NYSE) or the NASDAQ, a platform for technology companies.
Notably, Didi's management planned to make its IPO on the Hong Kong Stock Exchange but ultimately opted for the US platform. The ride-hailing giant was concerned about strict regulations of China’s Special Administrative Region. Reportedly, the company plans to raise $100 million by issuing ordinary shares at $0.00002. The Wall Street Journal estimated that Didi’s total valuation could easily eclipse $70 billion at the initial-public-offering price.
Founded in China in 2012, Didi operates in Japan, Australia, Brazil, Mexico, Colombia, Chile, and Canada.
