China’s Didi price prediction: might raise upto $4 billion in IPO

The Chinese company Didi Chuxing Technology previously known as Didi Dache and Didi Kuaidi which is a ride-hailing business located in Beijing across over 550 million consumers and tens of millions of drivers. The company’s app includes taxi hailing, private vehicle hailing, social ride-sharing, and bike-sharing, as well as on-demand delivery services and automobile services such as sales, leasing, financing, maintenance, fleet operation, electric vehicle charging, and co-development of vehicles with automakers.

About Price Prediction

HONG KONG, June 28 — Didi Global Inc, China’s largest ride-sharing company, on Monday the company will shut the investor trading volumes for its $4 billion U.S. initial public offering (IPO) one day early. The New York offering, which is expected to price on Tuesday and begin trading on Wednesday, will be the largest U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014.  Because the material is not yet public, the persons could not be named. A request for comment from Didi went unanswered.

Many Investors Still Doubt

One Hong Kong-based hedge fund which is a potential investor requested anonymity since he was not authorized to make a public statement, he said, “Many investors still doubt if Didi can maintain a high growth rate for its core ride-hailing business in China”.

Due to increased rivalry from rivals, as well as the possible consequence of a regulatory crackdown, the firm is finding it difficult to develop in lower-tier locations. Its market share in major cities is already quite high, implying that there is little opportunity for further expansion.

Price Range by Didi

On Monday, at 5 p.m. in each area, the investor order books would shut one day early.

According to a regulatory filing on Thursday, Didi established a price range of $13 to $14 per American Depositary Share (ADS) and stated it will sell 288 million of the shares in the IPO. The offer will raise $4.03 billion at the highest point. The business might sell an additional 43.2 million shares under an overallotment opportunity to acquire up to $605 million.

Didi would have been valued at $62.4 billion to $67.2 billion at the indicated price range. The money will be used to invest in technology, particularly electric vehicles, and to expand outside of China, according to the firm.

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