It's Official: DiDi's Gone Public on NYSE
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It's Official: DiDi's Gone Public on NYSE

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Alejandro Enríquez By Alejandro Enríquez | Journalist and Industry Analyst - Thu, 07/01/2021 - 12:47

Two weeks ago, MBN published the details of the IPO F-1 prospectus of the upcoming DiDi Chuxing IPO. On June 30, the company officially went public selling 316.8 million American Depositary Shares (ADS), almost 28 million more than originally planned, at a price of US$14 per share. “We believe in that world. In a ‘future mobility world, where our cities are lovely and livable, and our lives are easier and better,” wrote DiDi’s Chairman and CEO Will Wei Cheng and President Jean Qing Liu on the prospectus.

The company raised US$4.4 billion in its US IPO. The listing is the biggest US share sale by a Chinese company since Alibaba raised US$25 billion in 2014. DiDi's stock opened yesterday at US$16.65, a 19 percent increase and its stock price reached a US$18.00 high during the session. At closing, its stock price fell to US$14.14, a 1 percent increase compared to the original stock price.

DiDi is present in 15 countries and had 493 million annual active users, 16 million annual active drivers and 41 million average daily transactions as of Mar. 31, 2021, according to the company's prospectus. The company has implemented ambitious mobility projects for each aspect of the Connected, Autonomous, Shared and Electric (CASE) trends reshaping the industry today and was named one of the 100 most influential companies by TIME Magazine. DiDi recently allied with Volvo Cars to deploy a fleet of autonomous vehicles in China, reported MBN.

During the past three years, DiDi launched a global expansion strategy and ramped up operations in 14 countries, including Mexico, Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Panama, Peru and the Dominican Republic. In Mexico, DiDi is present in 34 cities.  Andrés Panamá, CEO of DiDi Mexico, explains how the company is expanding its operation in Mexico: “A clear example is DiDi Food, initially launched in Guadalajara, which is now present in three cities. We also launched DiDi Comparte, our carpool service, in Merida, allowing passengers to share trips with other users,” said Panamá, he told MBN.

Some financial analysts have expressed concerns regarding regulations for ride-hailing applications in different markets. In Mexico, 17 states regulate ride-hailing but some requirements vary from state to state. Mexico’s Supreme Court has also ruled that the imposition of excessive requirements on vehicle characteristics is unconstitutional and Mexican law prevents drivers to be classified as employees given the absence of a subordinate relationship.

Photo by:   M B M

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