Didi prices IPO above range, valuing at USD73 billion - PingWest

Didi prices IPO above range, valuing at USD73 billion

Chinese ride-hailing company Didi prices its IPO at USD14 on Tuesday, which is the top of its indicated range.

Detail: At the top of the range, the IPO would raise USD4.4 billion that give Didi a fully diluted valuation of about USD73 billion..

Didi sold 317 million American Depository Shares (ADS), more share than planned 288 million.

Didi increased its share size because investor oversubscribed its share by multiple times, sources told Reuters on Tuesday.

Didi rans its roadshow through round the clock virtual meetings because of time-zone differences. The company is expected to debut on the New York Stock Exchange on June 30.

Didi was co-founded in 2012 by former Alibaba employee Wei Cheng, Didi has 493 million annual active riders and 15 million annual active drivers.

The State Administration for Market Regulation launched probe into Didi, investigating whether Didi used any unfair market practice to squeeze out smaller rival. 

Context: Didi Chuxing has set a plan of completing more than 100 million rides per day within the next three years, which is nearly three times over Didi’s current daily capacity, according to company’s co-founder and CEO Wei Cheng.

The plan dubbed “0188” is made up of goals that includes at least 100 million daily orders, monthly active user base of 800 million globally and a penetrations rate of over 8% in the domestic mobility service market including public transport service lie bus services and private transport service like ride-hailing. All goals should be achieved in the next three years.

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