China’s ride-hailing giant raised $4.4 billion in its IPO, giving the company a valuation of about $67 billion.
Shares traded as high as $18 earlier in the day. At last check, Didi's price was trading 3.3% higher after hours. The pricing came in somewhat below expectations for a valuation as high as $100 billion.
Didi sold 317 million ADSs in the offering, compared with the 288 million originally planned.
TheStreet’s Jim Cramer recently said Didi could offer speculators a good opportunity.
At $4.4 billion, Didi would be the second-largest U.S. listing by a Chinese company on record, after Alibaba's (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report $25 billion debut in 2014, according to data compiled by Bloomberg.
Tech giants Tencent (TME) - Get Tencent Music Entertainment Group Sponsored ADR Class A Report, Alibaba and Softbank SFTBY all are backers of the company.
U.S. ride-hailing company Uber Technologies (UBER) - Get Uber Technologies, Inc. Report took a stake in Didi in 2016 when it merged its China unit with Didi after falling behind the company in the world’s biggest market.
Ride-hailing companies faltered during the COVID-19 pandemic amid the economic and societal shutdowns. But Uber leveraged its delivery services to offset much of the lost ride business.
Didi had more than twice Uber’s revenue last year and is forecast to have 800 million monthly active users by 2022.
Didi’s IPO could reignite China-based company flotations in the U.S.
The pace of China and Hong Kong-based listings on U.S. markets started the year quite high, with $7.1 billion closed by the end of the first quarter, compared with the $12 billion recorded over all of 2020