Didi considers 2021 IPO in HK - sources

10/20/2020 | 06:36am

China's top ride-hailing firm Didi Chuxing is reportedly considering Hong Kong for a multibillion-dollar initial public offering.

People with knowledge of the matter said the firm is rethinking previous aims to list in New York as a result of rising tensions with the U.S.

Didi is backed by technology investment giants SoftBank, Alibaba and Tencent.

And has begun generating a healthy profit since the second quarter of the year.

Some of its investors are now thought to be keen to cash in.

Three sources have told Reuters that Didi has started initial talks with investment banks for the long-awaited IPO.

The Beijing-based company is thought to be targeting a valuation of more than $60 billion, with the listing expected in the first half of next year.

Asked by Reuters to comment, Didi said it doesn't have any "definitive" IPO plan or timeline.

For years the ride hailing app has aimed for a U.S. IPO because of the prestige of a New York listing.

It would also put it alongside comparable peers like Uber and Lyft.

Uber and Didi have long-standing links: after waging an expensive campaign to crack the Chinese market, Uber in 2016 sold its operation to Didi in exchange for a 17.5% stake in the Chinese firm.

In turn, Didi made a $1 billion investment in Uber.

If completed, the IPO would further burnish Hong Kong's status as a global capital markets hub.

Nearly $29 billion worth of IPOs and secondary listings have been carried out in the city so far this year.

© Reuters 2020
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