Chinese giant Didi Chuxing on Thursday applied for public disclosure of what could be one of the biggest technology initial public offerings this year, positioning major shareholders Uber and SoftBank.
The company reported $ 21.6 billion in revenue last year. In addition, it reported last-quarter profit of $ 6.4 billion. In particular, the company reported a net profit of $ 837 million prior to certain shareholder payments and a comprehensive net profit of $ 95 million for the quarter.
Uber owns 12.8% of the company after selling its Chinese business to Didi in 2016, while SoftBank’s Vision Fund holds 21.5%.
Between 2019 and 2020, Didi’s revenue shrank by almost 10% as the Covid pandemic hit China hard last year. Before the pandemic, however, revenues grew by 11% between 2018 and 2019. In addition, revenues returned in the first quarter as the pandemic recovered, with 107% growth in the first quarter of the previous quarter.
For comparison, Uber reported a net loss of $ 108 million on revenue of $ 2.90 billion in the first quarter. For the full year 2020, Uber’s net losses are $ 6.77 billion with $ 11.14 billion in revenue.
Didi was recently valued at $ 62 billion after a fundraising round in August, and is backed by investment giants such as SoftBank, Alibaba and Tencent. The company could have an estimated $ 100 billion during the IPO.
The listing, which could be one of the biggest technology debuts worldwide this year, is coming as demand from transport and travel companies returns due to a reduction in Covid-19 cases and the release of vaccines. His US counterparts, Uber and Lyft, have said they will be profitable by the end of this year, thanks to the recovery.
Didi acquired Uber’s business in China in 2016 in a complex transaction involving both companies, which take shares in each other. Didi said she sold all her shares in Uber in November and December last year.
Founded in 2012, Didi said it has 493 million active riders a year and 15 million active drivers a year. Didi has been named four times on the CNBC Disruptor 50 list.
The exact name of the company registered on the F-1 is Xiaoju Kuaizhi.
Junior Trader Nikolay Yordanov