China's Uber, Didi Chuxing Lowers IPO Valuation Target From $100B To $62B-$67B Following Chinese Internet Firm Crackdown

China’s Uber Technologies Inc UBER equivalent, Didi Chuxing Technology Co, is on the cusp of pulling off its U.S. initial public offering following the growing Chinese antitrust crackdown on internet firms, Bloomberg reported.
It was among 34 internet giants summoned by regulators in April to correct excesses. Didi warned investors regarding possible regulatory penalties.
Didi is now chasing a valuation of $62 billion to $67 billion, the Wall Street Journal reported, which is below the previous $100 billion valuation.
Although, the valuation may exceed $70 billion, including restricted stock units.
Didi targets raising $3.9 billion from 288 million American depositary shares, at $13 - $14 per ADS.
It will utilize the proceeds to invest in technology, expand beyond China and introduce new products.
Didi plans to list its ADSs on the NYSE under the “DIDI” symbol.
Traditional U.S.-listed IPOs have raised over $70 billion in 2021 already.
Didi reported an FY20 revenue decline of 8.4% Y/Y to $21.63 billion due to the pandemic effect. It posted a net loss of $1.63 billion.
The ride-hailing company posted revenue of $6.4 billion during the March quarter and $837 million in profit. China accounted for 90% of the revenue.
Alibaba Group Holding Ltd BABA alumnus founder Cheng Wei owns 7% of its shares and controls 15.4% of its voting power before the IPO.
Didi won its price war with Uber in 2016 after Uber merged its China unit with Didi for a stake in Didi.
Influential backers include SoftBank Group Corp SFTBY SFTBF, Tencent Holdings Ltd TCEHY, and Uber.