Didi Chuxing – “China’s Uber” – arrives for New York stockmarket listed

Chinese minicab company Didi Chuxing has filed for an initial public offering (IPO) in the US.

Didi Chuxing self-driving minicab
(Image credit: © HECTOR RETAMAL/AFP via Getty Images)

Chinese ride-hailing company Didi Chuxing has filed for an initial public offering (IPO) in the US, says Bloomberg. It was always expected to list at some stage, but the end of Covid-19 has prompted the company to accelerate its plans. It wants to raise some cash to help pay for its continued expansion and hopes to achieve a valuation of $70bn-$100bn.

At first glance, Didi’s hope of a $100bn valuation “does not seem too far-fetched”, says Lex in the Financial Times. It would value the company at around five times 2020 revenues, lower than the eight times Uber and Lyft command.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

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