Chinese ride-hailing giant Didi Chuxing priced its IPO at $14 a share Tuesday evening, giving the company a valuation of about $67 billion according to reports.
At $14 a share, Didi will raise about $4 billion, Bloomberg reported. The Wall Street Journal also reported the $14 price, citing a person familiar with the situation.
The pricing comes in somewhat below expectations for a valuation as high as $100 billion.
Tech giants Tencent, Alibaba and Softbank all are backers of the company. U.S. ride-hailing company Uber (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 economic shutdowns. However, Uber leveraged its delivery services to offset much of the lost ride business.
Goldman Sachs, Morgan Stanley and JPMorgan Chase are leading the offering.
TheStreet.com’s Jim Cramer recently said Didi could offer speculators a good opportunity.
Didi had more than twice Uber’s revenue last year and is forecast to have 800 million monthly active users by 2022.
Didi's listing is among the largest U.S. IPOs since Alibaba's debut in 2014. It holds the potential to re-ignite China-based company flotations hurt by tech stock slides earlier this year and tensions between Washington and Beijing.
The pace of China and Hong Kong-based listing on U.S. markets started the year quite high, with $7.1 billion closed by the end of the first quarter, compared to the $12 billion tally recorded over all of 2020.
Shares of Uber ended Tuesday's regular trading session off 35 cents, or 0.7%, at $50.76.