Düsseldorf The Chinese Uber– According to insiders, competitor Didi is aiming for an IPO in Hong Kong in the coming year. The driving service agent used by companies like Softbank, Alibaba and Tencent is funded, talks have begun with investment banks, three people familiar with the matter told Reuters.
Didi could be valued at more than $ 60 billion in the IPO. The issue is planned for the first half of 2021. Didi said there were no fixed stock exchange plans.
Like its competitors Uber and Lyft Insider, the Chinese-based company had been considering a share placement on New York’s prestigious Wall Street in recent years. Companies can often reach more investors there and in many cases also collect more money.
Because of the ongoing trade dispute between China and the USA and the restrictions on Chinese companies in America, Didi has now decided in favor of Hong Kong, it said.
The company, which was founded eight years ago, has been making “healthy profits” since the second quarter of 2020 and some of the investors are now interested in silvering their shares, said one of the insiders. Before going public next year, Didi is planning a private financing round to increase the valuation.
The price development of Uber and Lyft, which are listed on Wall Street, has so far been below the high expectations of investors. Both stocks currently cost less than when they went public, and Lyft has lost more than two-thirds of its value since then.
Uber and Didi have been closely related for some time. After an expensive marketing campaign aimed at conquering the Chinese market, Uber sold its China business to Didi in 2016, in return for a 17.5 percent stake in Didi. In addition to the classic transport service, Didi is also active in bus transport and bicycle rental.