(Reuters) -Chinese ride-sharing giant Didi Global Inc’s $4 billion initial public offering (IPO) received enough investor demand to clinch its targeted price range on Friday, vindicating a lowering of valuation expectations, people familiar with the matter said.Alibaba-backed medical data firm LinkDoc Technology Ltd. The listing in New York, which will be the biggest U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014, is expected to price on Tuesday, and the shares to start trading on Wednesday.ĭidi’s indicated price range would give it a valuation of $62.4 billion to $67.2 billion. peer Uber Technologies Inc, rather than Grab, Southeast Asia’s biggest ride-hailing and food delivery firm.ĭidi not respond to a request for comment on its bookbuilding exercise.ĭidi was hoping it could command a valuation of as much as $100 billion, Reuters reported in March.Īt the new valuation, Didi would be valued more like its U.S. “Many investors still doubt if Didi can maintain a high growth rate for its core ride-hailing business in China,” said a prospective investor at one Hong Kong-based hedge fund who asked not to be identified as he was not allowed to speak to media. “Its market share is already very high in big cities, which means there is limited room for its future growth,” the source added. “It’s also challenging for the company to expand in lower-tier cities due to increasing competition from rivals, not to mention the potential impact of a regulatory crackdown.”ĭidi set a price range of between $13 and $14 per American Depositary Share (ADS), a regulatory filing showed on Thursday, and said it would offer 288 million such shares in the IPO. Investor presentations, led by Didi’s vice president and head of capital markets, David Xu, will run until Tuesday.Īt the top of the range, the deal will raise $4.03 billion.Īn overallotment option could see the company sell an extra 43.2 million shares to raise up to an extra $605 million. listing of this size is shorter than the usual 10 days of most. Morgan Stanley Investment Management has indicated interest in subscribing for up to $750 million worth of stock in the IPO and Singapore’s Temasek for $500 million, Didi’s updated prospectus shows. Last week, Reuters reported that China’s market regulator had begun an antitrust investigation of Didi, citing sources with knowledge of the matter. The State Administration for Market Regulation (SAMR) is investigating whether Didi used competitive practices that unfairly squeezed out smaller rivals. (Reporting by Scott Murdoch and Julie Zhu in Hong Kong, Anirban Sen and Niket Nishant in Bengaluru, and Yilei Sun in Beijing Editing by Clarence Fernandez and David Evans) It is also examining whether the pricing mechanism used by Didi’s core ride-hailing business is sufficiently transparent.Īt the time, Didi said it would not comment on unsubstantiated speculation from unnamed sources. Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. This is not to be considered as financial advice and should be considered only for information purposes. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. #SOURCES DIDI CHINABASED LINKDOC IPOTIMES PROFESSIONAL# We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link.LinkDoc's decision to suspend its $211 million IPO, first reported by Reuters, is likely to be followed by others, analysts said, although they noted that U.S. Listing, they may have to wait for further clarification, stricter scrutiny and pre-approval from different regulators and authorities," said Bruce Pang, macro & strategy research head at China Renaissance Securities. #SOURCES DIDI CHINABASED LINKDOC IPOTIMES PROFESSIONAL#.
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