Didi Chuxing, the Chinese ride-hailing behemoth, has made public the prospectus for its much anticipated initial public offering.
The Beijing company filed under its formal name, Xiaoju Kuaizhi. With the IPO, Didi’s valuation could surpass $70 billion, The Wall Street Journal said.
Didi provides a smartphone app that lets users connect with vehicles and taxis for hire. Founded in 2012, it operates in nearly 4,000 cities, counties, and towns across 15 countries, its prospectus said. It had more than 493 million annual active users as of March 31.
The company swung to a profit of roughly 5.5 billion yuan ($837 million) for the quarter ended March 31, compared with a loss of about 4 billion yuan ($621 million) for the period in 2020. Revenue more than doubled, to about 42.2 million yuan ($6.4 billion) for the March 31 quarter.
For the year ended December 31, Didi’s losses widened to 10.6 billion yuan ($1.62 billion), while revenue dropped 8.4%, to 141.7 billion yuan ($21.6 billion), the prospectus said.
Didi has raised $23.2 billion in funding, Crunchbase said.
SoftBank Group (ticker: SFTBY) would be a big winner in a Didi IPO. The SoftBank Vision Fund has a 21.5 stake, making it the largest shareholder in the start-up. Uber Technologies (UBER) and Tencent Holdings (TCEHY) are also major investors in Didi.
Didi is known for successfully pushing Uber out of China after the U.S. company lost a bruising price war and ended up selling its operations to Didi for a stake. Uber owns 12.8% of Didi voting power, while Tencent has 6.8%, the prospectus said.
Like most companies seeking an IPO, Didi filed to raise $100 million, the prospectus said. It did not disclose how many American depositary shares it would sell or their price range. That will come with future filings. The company plans to trade under the ticker DIDI.
The company has not yet decided whether it will trade on the Nasdaq or the New York Stock Exchange. That decision will be revealed in future filings. The $100 million is also considered a placeholder that will change with more information.
Didi confidentially filed for the IPO in April. Goldman Sachs, Morgan Stanley, and J.P. Morgan are the underwriters on the deal.
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