CHINA’S RIDE-HAILING FIRM DIDI BARES $1.6B LOSS IN IPO FILING
Chinese ride-hailing company Didi revealed a $1.6 billion net loss for 2020 as it moves ahead with plans for a US initial public offering (IPO), Crystal Tse, Ellen Huet and Katie Roof reported for Bloomberg News.
The company in its first public filing for the IPO listed the offering as $100 million, a placeholder that will change when the company discloses terms for the share sale. Didi filed Thursday under the business name Xiaoju Kuaizhi Inc., with Goldman Sachs Group Inc., Morgan Stanley, and JPMorgan Chase & Co. leading the offering.
Didi, one of the largest investments in SoftBank Group Corp.’s portfolio, accelerated its listing plans after its business rebounded as the coronavirus pandemic ebbed in China. The company has been considering seeking a valuation of as much as $70 billion to $100 billion in the IPO, Bloomberg News reported in April.
In recent months, Didi has been trading at a valuation of about $95 billion on the secondary market, said people familiar with the matter who asked not to be identified because the information was private.
The company last raised funding at a $62 billion value last year, according to PitchBook. A representative for Didi declined to comment on the company’s valuation.
SoftBank’s Vision Fund, Uber Technologies Inc., and Tencent Holdings Ltd. are currently among Didi’s biggest shareholders with a combined stake of about 41%, its filing shows. Didi co-founder Will Wei Cheng holds 7% of the shares.
Didi reported revenue of $21.6 billion in 2020. In the first quarter of this year, as China recovered from the pandemic, revenue more than doubled from the year before to hit $6.4 billion. The company also turned a profit for the quarter, reporting a net income of $837 million.
The murder of two passengers by Didi drivers in the summer of 2018 sparked public outrage and the mass deleting of the company’s app. Didi’s founders Cheng and Jean Qing Liu called the deaths the company’s darkest moment.