Didi Chuxing, China‘s number one company in private transportation service, is leaning towards choosing New York over Hong Kong for its initial public offering (IPO), where it estimates to obtain a valuation of at least US $ 100 billion. This was announced by a strong close to the process, indicated the newspaper Gestión de Perú.
The firm, which is currently considering listing through a Special Purpose Acquisition Company (SPAC), hopes to merge with a blank check company that raises capital through a US IPO. Reuters explained.
However, Didi estimates that the SPAC option is less viable given its valuation objective, since they expect to raise around US $ 10 billion if the sale of at least 10% of its shares is completed, in what is considered the largest offer China‘s initial public listing in the United States since Alibaba’s $ 25 billion IPO in 2014.
Sources linked to the brand They stated that the company is also contemplating a second listing in Hong Kong if it finalizes its first initial public offering in the United States, despite not having a defined plan regarding its destination or listing schedule.
The sources requested confidentiality of his identity because the information is confidential. However, two of the sources consulted maintained that “the preference for New York partly reflects fears that a Hong Kong IPO application will face stricter regulatory scrutiny over Didi’s business practices, including the use of vehicles. without a license and part-time drivers ”.
In years past, Chinese authorities fined Didi for using unlicensed vehicles multiple times in 2019. At that time, Didi responded by launching a campaign to improve passenger safety.
Another advantage that Didi sees with the completion of an IPO in New York is the rate of listing that this implies, given that it is much more predictable and has a deeper pool of capital, the same sources alleged.
For its part, the operator of the Hong Kong stock exchange, HKEX, declined to comment on the possibility of Didi listing through its platform.