Investors have a lot of questions around the upcoming Didi IPO, including over its IPO date and price range. This is because Didi is one of several high-profile Chinese companies seeking to come public on U.S. exchanges. It is also because the ride-hailing company is set to make a big splash on Wall Street.
What does that mean? In the face of delisting concerns and other U.S.-China woes, Didi is set to be one of the largest initial public offerings of the year. More specifically, the company is aiming for a $60 billion valuation.
With that in mind, let’s dive into some of the details of this IPO as per the company’s recent F-1 prospectus.
What Does the Upcoming Didi IPO Entail?
Chinese ride-hailing company Didi is planning to list 288 million American Depository Shares at a range of between $13 and $14. At the upper end of that range, the company hopes DIDI stock — which will be listed on the New York Stock Exchange — will bring in more than $4 billion in proceeds.
As a high-growth player in the Chinese ride-hailing market, Didi plans to use these funds for growth capital. Its business model is currently profitable, but expanding its reach will be expensive. Didi reportedly brought in $837 million of profit on approximately $6.4 billion in revenue.
Didi is a relatively young company, founded in 2012. However, it has garnered attention from some of the world’s brightest minds in the ride-hailing space. Companies such as Uber (NYSE:UBER) and Tencent (OTCMKTS:TCEHY) join Softbank (OTCMKTS:SFBTY) as key backers.
According to recent reports, Didi is expected to finalize its pricing on Tuesday and trade Wednesday. Thus, this week will be an intriguing one for investors interested in Chinese tech companies.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.