Didi Plans 2021 IPO in Hong Kong, Targets More than $60 Billion Valuation

October 21, 2020 2:05 am

Beijing (PingWest)—Didi Chuxing, the Chinese ride-hailing giant, is considering a Hong Kong IPO next year, Reuters reported, citing people familiar with the matter.

The SoftBank-backed company originally intended to go public in New York, but as tensions between China and the US intensified, the plan has been changed.

Didi has started initial talks with investment banks for the long-awaited IPO, looking to formally appoint lead banks for the float in the coming months, according to the report.

It is said that Didi aims to be valued at more than US$60 billion by the time of IPO launch, which is expected to be as early as the first half of 2021. 

The Beijing-headquartered company is also considering a new fundraising round ahead of the IPO in a bid to boost its valuation, said Reuters. In the private secondary market, some of its shares are trading well below a valuation of $56 billion it reached in 2017.

Founded in June 2012, the ride-hailing company announced it has begun to generate healthy profits in the second quarter of this year.

After fierce competition with Uber in China, Didi acquired the Chinese branch of the American ride-sharing firm in 2016 and monopolized the Chinese market with a market share of more than 80%.

The Chinese company is actively expanding the global market and has launched services in Latin America, Russia, Australia and other countries.