Daily Management Review

U.S. IPO may be Considered by Uber China Rival Didi as Early as 2017: Bloomberg


05/16/2016




U.S. IPO may be Considered by Uber China Rival Didi as Early as 2017: Bloomberg
If media reports are to be believed, it might not be loon before Apple Inc. is able to reap the benefits of investing $1 billion in Chinese car-hailing service Didi Chuxing.
 
According to Bloomberg, Didi is targeting an initial public offering in New York next year. Quoting sources, the report states that depending on how its battle with Uber Technologies Inc. in China plays out, the company would decide the timing of for the IPO. With Uber having said it wants to hold off IPO for as long as possible, such a move may put the Chinese app ahead of its U.S. rival in going public.
 
Following Apple’s $1 billion contribution, the valuation of China’s biggest ride-hailing app has swelled to about $26 billion as the company is in the process of raising about $3 billion of funding. Having achieved break even in about half of the 400 Chinese cities it operates in, Didi, already backed by Alibaba Group Holding Ltd. and Tencent Holdings Ltd. On the other hand Uber spends heavily to win both drivers and riders.
 
“It’s great timing because the company is on a tear in terms of winning market share and users, and that may not last forever. Didi could be facing some pressure from investors who want to see their investment returns, ” said Li Yujie, an analyst with RHB Research Institute Sdn in Hong Kong.
 
There was no comment from Didi, formally known as Xiaoju Kuaizhi Inc. on any potential IPO.
Showing him using Didi’s taxi hailing service together with Didi President Jean Liu, Apple Chief Executive Officer Tim Cook posted a picture on his Twitter account. The post drew hundreds of comments.
 
Since Alibaba’s record IPO offering in 2014, a U.S. IPO could be the biggest by a Chinese company at Didi’s current valuation. Other ride-sharing apps that include Uber and Lyft Inc. are in a position to conduct a public offering.
 
Bloomberg reported citing sources that Didi hasn’t decided on which exchange and which banks to hire yet.
 
After brutal competition drove up losses, separate apps backed by Tencent and Alibaba merged to create Didi last year. Last month the company said it’s on track to turn an operating profit “soon” with more than 14 million registered drivers in China and delivering more than 11 million rides a day.
 
Uber has been dwarfed by Didi in China even though it is valued at $62.5 billion and is the biggest ride-sharing app globally. Uber is currently unprofitable in the country even as the company has set a target of operating in 100 Chinese cities this year which is just a quarter of Didi’s reach.
 
San Francisco-based Uber has said that since it makes $1 billion annual profit from its 30 largest global markets, the company said it’s able to support its push in the country and has pledged to spend $1 billion in China.
 
There were no comments made to Apple’s investment in Didi from Uber.
 
Didi also counts SoftBank Group Corp. and Temasek Holdings as existing investors apart from Apple Sources told Bloomberg that Beijing Automotive, controlled by the State-owned Assets Supervision & Administration Commission of Beijing and China’s sovereign wealth fund China Investment Corp. have also invested.

In its previous fundraising China Renaissance was used as a financial advisor by Didi.
 
(Source:www.bloomberg.com) 






Science & Technology

Apple shows new entertainment services

Large U.S. Study Finds Detection Of Irregular Heart Beat By Apple Watch

Apple to present Netflix competitor at the end of March

Live Human Under-Skin Chip Implantation Takes Place At Barcelona

IDC: Wearable tech gadgets market is booming

Second Patient In 12 Years Becomes HIV Free By Bone Marrow Transplantation

Car-Sharing Platforms Could hold The Key To 5G & Auto Industry Collaboration

Bezos tells about his space plans

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

World Politics

World & Politics

China's expansion into Europe: Italy’s ports are next

US watchdog is accused of violating aircraft certification process

Large Section Of Citizens Unhappy With Public Services & Benefits: OECD Survey

Largest companies reveal volumes of plastic produced by them

US Warning To Germany About Intelligence Sharing Over Huawei Ban

Mercer reveals the world’s safest cities

No vaccinations, no school: Italy’s new law

Why the new Aachen Treaty cannot save France-Germany relation