{"id":3412,"date":"2021-06-11T23:16:13","date_gmt":"2021-06-12T03:16:13","guid":{"rendered":"https:\/\/www.meigutv.com\/?p=3412"},"modified":"2024-06-06T12:42:49","modified_gmt":"2024-06-06T16:42:49","slug":"what-makes-didi-choose-new-york-rather-than-hongkong-for-its-ipo","status":"publish","type":"post","link":"https:\/\/www.meigutv.com\/en\/what-makes-didi-choose-new-york-rather-than-hongkong-for-its-ipo\/","title":{"rendered":"What makes Didi choose New York rather than Hongkong for its IPO?"},"content":{"rendered":"\n

Jason Lin<\/strong><\/p>\n\n\n\n

Hong Kong got benefits after U.S. regulators last year enacted a law to boot Chinese companies off U.S. exchanges unless American regulators are permitted to review their financial audits. The city has been attracting growing volumes of IPOs or dual-listings from mainland Chinese companies over the past two years.<\/p>\n\n\n\n

However, Chinese ride-sharing giant Didi did not choose Hongkong this time but sought its debut in New York. The company recently filed F-1 with SEC<\/a> to go public in the U.S., possibly becoming one of the biggest tech IPOs in 2021.<\/p>\n\n\n\n

Founded in 2012, Didi has become China’s top ride-hailing firm and the world’s largest mobility technology platform. The company operates in nearly 4,000 cities, counties, and towns across 15 countries. Except for the traditional ride-sharing business, Didi also invests in making self-driving robotaxis a reality, and recently got approval to test self-driving vehicles in Beijing.<\/p>\n\n\n\n

According to its SEC filing, Didi reported $21.6 billion in revenue but net losses of $1.6 billion in 2020. It also reported a net income of $837 million on revenues of $6.4 billion for 2021’s first quarter. By comparison, Uber’s (NYSE: UBER) net losses amounted to $6.77 billion on $11.14 billion in revenue for the year 2020, and the company reported a net loss of $108 million on revenues of $2.9 billion in its first quarter.<\/p>\n\n\n\n

PitchBook data shows that Didi’s most recent valuation was $62 billion following its fundraising in August 2020. Bloomberg reported that the company could have a $100 billion valuation at the time of its IPO. Since Uber’s market capitalization was around $95 billion by the week of June 11th, Didi is highly possible to be the most valuable ride-sharing firm after its debut.<\/p>\n\n\n\n

With the IPOs of Uber and Lyft (NASDAQ: LYFT), U.S. investors have already cleared about the ride-hailing economy and then can well digest Didi’s business model and the industry’s prospect. On the contrary, Hongkong’s investors would not give the company a surprising estimated valuation. Didi’s highest estimated valuation in Hongkong was no more than $80 billion, so that the company had to lean toward picking New York over Hong Kong for its IPO.<\/p>\n","protected":false},"excerpt":{"rendered":"

Jason Lin Hong Kong got benefits after U.S. regulators last year enacted a law to boot Chinese companies off U.S. exchanges unless American regulators are permitted to review their financial audits. The city has been attracting growing volumes of IPOs or dual-listings from mainland Chinese companies over the past two years. However, Chinese ride-sharing giant […]<\/p>\n","protected":false},"author":3,"featured_media":3413,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":""},"categories":[44],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/posts\/3412"}],"collection":[{"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/comments?post=3412"}],"version-history":[{"count":1,"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/posts\/3412\/revisions"}],"predecessor-version":[{"id":3415,"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/posts\/3412\/revisions\/3415"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/media\/3413"}],"wp:attachment":[{"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/media?parent=3412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/categories?post=3412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.meigutv.com\/en\/wp-json\/wp\/v2\/tags?post=3412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}