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DiDi Raises $4.4 Billion in Its Wall Street Debut

Chinese private transportation company DiDi sold more than expected in its IPO.

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

On Wednesday, Chinese private transport company DiDi Global Inc. (DIDI) debuted on Wall Street. The company's shares were listed on the New York Stock Exchange with a price of $14 each. With this Initial Public Offering (IPO), DiDi raised $4.4 billion, and could still reach the expected $10 billion.

DiDi sold about 317 million American Depository Shares (ADS), more than the 288 million shares contemplated.

Related: Why did Uber and DiDi wait times increase in CDMX?

Each share was offered for $14, the projected maximum, making it the largest Initial Public Offering (IPO) by a Chinese firm since Alibaba hit Wall Street in 2014 and raised $25 billion.

Thus, DiDi would reach a valuation of approximately $67 billion dollars, according to Bloomberg, but other sources calculate it up to $73 billion dollars. 

DiDi was founded in 2012 by Wei Cheng, a former Alibaba employee and current CEO, and Jean Qing Liu a former Goldman Sachs banker who now serves as the company's president. Today it is present in around 4,000 cities in 15 countries, has about 493 million active annual users and 15 million drivers.

The Chinese private transport giant is distinguished by having removed Uber from the Chinese market in 2016, when the former won the price war and led the US to sell its operations in the Asian country. This didn't turn out too badly for Uber, since the company currently owns 12.8% of DiDi's shares. The other large shareholder of the Chinese company is SoftBank Vision Fund, with a 21.5% stake.

Related: China's Didi Chuxing Prepares for IPO on U.S. exchange

In 2020, as a result of the Covid-19 pandemic, DiDi reported losses of $1.6 billion, with a reduction of 8.5% in its income to $21.6 billion, according to a document presented to the regulator.

During the first quarter of 2021, DiDi's revenue grew 105% to 42.163 million yuan (almost $6.53 billion).

Related: ´DiDi Mujer´ Is the New Function for Female Drivers to Connect Exclusively With Female Passengers