China’s Didi Chuxing Technology Co. is reportedly in talks to inaugurate a multi-billion-dollar initial public offering (IPO) this year.
People au courant with the matter told The Wall Street Journal that the Beijing-based party, whose investors include the likes of Apple Inc. (AAPL), Japan-based daresay capital firm Softbank Group Corp. (SFTBY), Chinese tech superhuman Tencent Holdings Limited (TCEHY) and Taiwanese electronics contract creation outfit Foxconn Technology Group (HNHPF), has discussed with bankers the chance of going public as early as the second half of 2018.
If Didi presses winning with these plans, its management team hopes to fetch a valuation of at least $70 billion to $80 billion. Those stocks would be used to help the company cope with growing ecumenical competition and finance its expansion in Latin America and parts of Asia. (See also: Didi Chuxing.)
Dispatch that Didi may go public came after one of its biggest new rivals, China’s Meituan-Dianping, outlined its ambition to IPO later this year. Uber, another competitor in some abroad markets and a holder of a 20% stake in Didi, is also considering a civic listing, although the U.S.-based company’s CEO Dara Khosrowshahi said this is unacceptable to happen before 2019. Didi acquired Uber’s China module in 2016. (See also: Uber Will IPO in 2019.)
The Journal’s sources said Didi has yet to conclusion on a listing venue and may not go ahead with the IPO this year, as discussions are stock-still in the very early stages. The sources added that the Chinese assemblage, which was valued at $56 billion in a private fundraising round in delayed 2017, is also considering other means to raise capital.
One chance includes selling convertible bonds, which would pay investors consequence profit and then later be converted into shares, should Didi ideal its public listing. According to Crunchbase, the firm has raised capital of $20 billion in 14 readying rounds.
Didi is one of many Chinese tech giants considering booming public, noted the Journal. Aside from its rival Meituan-Dianping, Tencent Music Number Entertainment, the music-streaming business of internet giant Tencent Holdings, smartphone maker Xiaomi Corp. and Alibaba Sort Holding Ltd. (BABA) are all reportedly keen to tap the public markets for cash. (See also: Tencent Music Relaxation Group Eyes IPO.)
Alibaba, which is already listed on the New York Offer Exchange, is now reportedly keen to list on a stock exchange in its home furnish. Meanwhile, Tencent is planning an IPO in the U.S. as early as the second half of this year, and Xiaomi counts to list in mainland China and Hong Kong as soon as this summer, according to the Album.
Representatives for Didi were not available to comment.