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DiDi Global (DIDI) Goes Public: Here's What You Need to Know

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DiDi Global DIDI, the Beijing-based ride-hailing giant, recently made its much-anticipated debut as a publicly traded company on the U.S. stock market. Known as the “Uber of China”, the company made an extremely successful debut on Jun 30. The stock opened at $16.65 and climbed to $18.01 (28.6% above the IPO price of $14 per American Depository Share), before ending its first day of trading on the New York Stock Exchange at $14.14. Notably, each ADS represents 0.25 Class A ordinary shares.

The firm raised $4.4 billion by selling 316.8 million ADSs, thereby becoming the biggest IPO of a Chinese company in the United States since Alibaba's BABA debut in 2014. We remind investors that the e-commerce giant had raised $25 billion in its U.S. IPO.

Coming back to DiDi Global, the company will use the proceeds from the IPO to invest in technology and bolster its presence in selected international markets, among other things.

The second day of trading at NYSE proved to be even more fruitful for DiDi Global with its shares ending the trading session on Jul 1 at $16.4 i.e. 17.1% above its IPO price. This upward price movement indicates that investors have welcomed this Chinese behemoth’s decision to tap the U.S. market. DiDi Global, which currently has a market cap of $78.63 billion, will reportedly be added to S&P Dow Jones' indexes on Jul 12.

DiDi Global, founded in 2012, controls roughly 90% the ride-hailing market in China. The company also operates across 15 countries, covering roughly 4,000 cities, counties and towns. Notably, DiDi Global bought Uber’s UBER China operations in 2016.

Despite seeing its revenue increase 5% (on an annual basis) from 2018 to 2020, DiDi Global is yet to make profits. Apart from DiDi Global, other companies that have gone public recently include medical-networking app, Doximity DOCS, and cannabidiol products manufacturer, Grove GRVI.

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DiDi Global Inc. (DIDI): Free Stock Analysis Report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
Grove, Inc. (GRVI): Free Stock Analysis Report
Doximity, Inc. (DOCS): Free Stock Analysis Report
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