# China’s Didi raises $4.4 billion in upsized U.S. IPO -sources Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-06-30 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Didi Global Inc Raises $4.4 Billion in U.S IPO, Valued at Meta Description: Didi Global Inc raised $4.4 billion in its U.S IPO, pricing it at the top of its range. Get details on the valuation, shares sold, and debut on the NYSE. URL: https://financedigest.com/chinas-didi-raises-4-4-billion-in-upsized-u-s-ipo-sourceshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-06-30t020228z1lynxnpeh5t03crtroptp4didi-global-ipo-1736838256884-compressed.jpg) By Echo Wang, Anirban Sen and Scott Murdoch (Reuters) – Chinese ride hailing company Didi Global Inc raised $4.4 billion in its U.S IPO on Tuesday, pricing it at the top of its indicated range and increasing the number of shares sold, according to two sources familiar with the matter. Didi sold 317 million American Depository Shares (ADS), versus the planned 288 million, at $14 apiece, the people said on condition of anonymity ahead of an [official announcement](https://www.financedigest.com/pega-pool-announces-the-official-launch-of-its-eco-friendly-bitcoin-mining-pool.html "PEGA Pool Announces the Official Launch of Its Eco-friendly Bitcoin Mining Pool"). This would give Didi a [valuation of about $73 billion](https://www.financedigest.com/allianz-puts-n26-stake-up-for-sale-at-3-billion-valuation-ft.html "Allianz puts N26 stake up for sale at billion valuation – FT") on a fully diluted basis. On a non-diluted basis, it will be [worth $67.5 billion](https://www.financedigest.com/why-a-quiet-revolution-in-the-cloud-is-worth-billions.html "Why A Quiet Revolution In The Cloud Is Worth Billions"). The company is expected to [debut on the New York](https://www.financedigest.com/stellantis-unveils-ram-ev-pickup-to-debut-late-in-2024-at-new-york-auto-show.html "Stellantis unveils Ram EV pickup, to debut late in 2024, at New York auto show") Stock Exchange on June 30. The increase in deal size came after the Didi investor order [book was oversubscribed multiple times](https://www.financedigest.com/best-selling-books-of-all-time.html "Best selling books of all time"), one of the sources said. [Investors have been told to expect their orders to be scaled back](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source") once allocations are completed on Wednesday, according to a separate source with direct knowledge of the matter. Didi did not respond to a request for comment. The listing, which will be the biggest U.S. [share sale by a Chinese company since Alibaba raised $25 billion](https://www.financedigest.com/abb-to-launch-1-billion-share-buyback-on-april-3.html "ABB to launch billion share buyback on April 3") in 2014, comes amid record IPO activity this year as companies rush to capture the lucrative valuations seen in the U.S. [stock market](https://www.financedigest.com/the-secret-to-stock-market-success.html "The Secret to Stock Market Success"). Didi’s [IPO is more conservative than its initial](https://www.financedigest.com/an-ipo-initial-preparatory-outline-for-an-ipo.html "An IPO (Initial Preparatory Outline) for an IPO!") aim for a valuation of up to $100 billion, Reuters has previously reported. The size of the [deal was cut](https://www.financedigest.com/gazprom-gas-cut-tempers-economic-hopes-after-ukraine-grain-deal.html "Gazprom gas cut tempers economic hopes after Ukraine grain deal") during briefings with investors ahead of the IPO’s launch. This suggests increasing investor worries about [China’s potential anti-trust related crackdown](https://www.financedigest.com/u-s-considers-crackdown-on-memory-chip-makers-in-china.html "U.S. considers crackdown on memory chip makers in China") and a more volatile IPO environment globally in 2021, said Douglas Kim, a London-based independent analyst, who writes on Smartkarma. But it seems like many investors like this deal, the [volatile IPO environment helped to lower IPO price](https://www.financedigest.com/italy-cpi-rises-again-in-april-amid-energy-prices-volatility.html "Italy CPI rises again in April amid energy prices volatility") and valuation looks attractive,” Kim told Reuters. Didi’s IPO was covered early on the first day of the book-build last week and the [investor books were closed](https://www.financedigest.com/optable-closes-20-million-series-a-financing-broadens-investor-syndicate-in-new-round.html "Optable Closes Million Series A Financing, Broadens Investor Syndicate in New Round") on Monday, a day ahead of schedule.. An over-allotment option, or greenshoe, exists where another 43.2 million [shares can be sold to increase the deal](https://www.financedigest.com/u-s-mid-tier-lenders-shares-rise-in-frankfurt-after-svb-deal.html "U.S. mid-tier lenders shares rise in Frankfurt after SVB deal") size. DIDI HISTORY Didi was co-founded in 2012 by former Alibaba employee Will Wei Cheng, who currently serves as the [chief executive officer](https://www.financedigest.com/deutsche-bank-names-eigendorf-new-chief-sustainability-officer.html "Deutsche Bank names Eigendorf new chief sustainability officer"). Cheng was joined by Jean Qing Liu, a former [Goldman Sachs](https://www.financedigest.com/telefonica-hires-goldman-sachs-to-sell-uk-mobile-masts-stake-el-confidencial-says.html "Telefonica hires Goldman Sachs to sell UK mobile masts stake, El Confidencial says") banker and the current president of the ride-sharing company. The [company counts](https://www.financedigest.com/factbox-companies-count-the-cost-of-ditching-russia.html "Factbox – Companies count the cost of ditching Russia") SoftBank, Uber Technologies Inc and Tencent as its main backers. Didi is also known for successfully pushing Uber out of the [Chinese market](https://www.financedigest.com/swiss-bank-ubp-returns-to-chinese-markets.html "Swiss bank UBP returns to Chinese markets") after the U.S. company lost a price war and ended up [selling its China operations to Didi for a stake](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount"). Liu Zhen, the [head of Uber China](https://www.financedigest.com/first-foreign-covid-vaccines-head-to-china-from-germany.html "First foreign COVID vaccines head to China from Germany") at the time, is Didi’s Liu’s cousin. Like most ride-hailing companies, Didi had historically been unprofitable, until it reported a profit of $30 [million in the first quarter](https://www.financedigest.com/warner-bros-discovery-adds-2-million-subscribers-in-first-quarter.html "Warner Bros Discovery adds 2 million subscribers in first quarter") of this year. The company [reported a loss of $1.6 billion](https://www.financedigest.com/australias-macquarie-explores-6-billion-deal-for-britains-mg-sky-news-reports.html "Australia’s Macquarie explores billion deal for Britain’s M&G, Sky News reports") last year and an 8% drop in revenue to $21.63 billion, according to a regulatory filing, as business slid during the pandemic. Its [shares are due to start trading](https://www.financedigest.com/russian-central-bank-gives-legal-entities-green-light-to-trade-foreign-shares.html "Russian central bank gives legal entities green light to trade foreign shares") under the “DIDI” symbol. (Reporting by Echo Wang in New York and Anirban Sen in Bengaluru and Scott Murdoch in [Hong Kong; Editing by Greg Roumeliotis, Bill Berkrot and Himani](https://www.financedigest.com/evergrande-winding-up-lawsuit-in-hong-kong-adjourned-to-nov-7.html "Evergrande winding-up lawsuit in Hong Kong adjourned to Nov 7") --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---