SoftBank-Backed Didi Fast Tracks IPO Plans At Higher Valuations: Bloomberg

China’s ride-hailing company, Didi Chuxing Technology Co, fast-tracked its initial public offering (IPO) plans by next quarter to capitalize on the COVID-19 vaccine-led economic recovery, Bloomberg reports.

• SoftBank Group Corp SFTBY SFTBF-backed Didi targeted a valuation above the $62 billion secured during its last funding round upon a post-pandemic business recovery.
• Didi could raise around $9 billion based on a common 15% float for mega Hong Kong IPOs capitalizing on the booming China IPO market. The company was yet to finalize the listing location.
• The company’s core business had already begun making small profits, as per President Jean Liu. The daily rides and revenue had reportedly surpassed pre-pandemic levels and reached a record high at present.
• The company sought capital to expand into online commerce and finance a major foray into Europe to compete with Uber Technologies Inc UBER. Didi also planned to leverage its leading position in China to expand into adjacent areas.
• Didi clashed with Uber in China till the latter’s retreat in 2016, leading to Didi’s monopoly.
• In the U.S., Lyft Inc LYFT expected positive weekly growth through 2021 end from the vaccine launch.
• Didi’s stock is currently traded in the secondary market between $43 to $49, below SoftBank’s $51 purchase price.
• Didi presently operates in 14 countries outside China, mainly in Latin America. Didi marked its direct foray into Europe In August and is already invested in Uber rival Bolt Technology OU. Didi would also compete against ride-hailing apps like Gett Inc, Ola, and BlaBlaCar.
• Price action: SFTBY shares are trading lower by 1.31% at $45.37 on the last check Friday.