Reuters
China’s Didi Chuxing Technology Co., one of the world’s largest ride-hailing companies, is holding discussions about a multibillion-dollar initial public offering that could happen as soon as this year, according to people familiar with the matter.
The Beijing-based company has in recent weeks been in talks with bankers about the feasibility of tapping the public markets for cash in the second half of 2018, as it looks to amass a large war chest to fend off rivals in China and other countries, the people said. Didi—which operates China’s largest ride-sharing platform and is expanding in Latin America and other parts of Asia—is hoping to fetch a valuation of at least $70 billion to $80 billion if it goes public, one of the people added.
The discussions are in early stages, the people familiar said. It isn’t clear whether an IPO will happen this year, and Didi hasn’t decided on a listing venue, they added. Representatives for Didi were unavailable for comment.
If Didi moves forward with its listing plans in the coming months, it would come to market before its American rival Uber Technologies Inc. Uber has been mulling an IPO, but Chief Executive Dara Khosrowshahi has said it’s unlikely to take place before 2019.
Separately on Tuesday, Didi executives announced they were considering developing a smart car customized for ride-sharing and is seeking auto makers that could manufacture the vehicle.
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