Chinese ride-hailing giant Didi Chuxing Technology is accelerating plans for an initial public offering to as early as next quarter to capitalise on a post-pandemic turnaround, people familiar with its plans said.
Didi, the largest investment in SoftBank Group’s portfolio, is targeting a valuation above the $62 billion it secured during its last funding round, the people said, asking not to be identified discussing an internal matter. The company moved up plans from a previous target of late 2021 after its Uber-like car-hailing business bounced back with China’s success in bringing Covid-19 under control.
Based on a common 15 per cent float for mega-IPOs in Hong Kong, one potential venue, Didi could raise roughly $9bn in what would be one of the largest tech debuts globally in 2021. The company hasn’t made a final decision on the listing location, one person said. Didi’s plans remain preliminary and the timing could still slip till later in the year depending on negotiations.
An IPO would cap a remarkable turnaround for a company that ran foul of first regulators and then Covid-19. It hopes to tap the same investor enthusiasm that propelled tech debuts this year from China’s video service Kuaishou Technology to South Korean e-commerce pioneer Coupang.
“Didi wants to capitalise on the red-hot market for China IPOs,” said Brock Silvers, chief investment officer at Hong Kong-based private equity fund Kaiyuan Capital.
Didi president Jean Liu said last year the company’s core business had already begun making small profits. Daily rides and revenue have surpassed pre-pandemic levels and are now at a record high, sources said. “Didi doesn’t comment on market speculation and doesn’t have a definite IPO plan or timeline,” the company said in a statement.
Didi is looking for capital to expand into online commerce and bankroll a major foray into Europe, where it must compete with Uber Technologies. The company, which remains the dominant player in China despite competition from the likes of Dida, is also looking to leverage that lead to expand into adjacent arenas from autonomous driving to electric vehicles.
Dida filed for a Hong Kong listing last year.
“The barely profitable company thinks that a market sensing the end of Covid is supportive, but there may be red flags” in its costly overseas and business expansions, Silvers said.
Founded by former Alibaba Group Holding staffer Cheng Wei in 2012, Didi clashed with Uber in China for years until its American rival retreated in 2016, selling its operation in the country to its local rival. Didi secured a near monopoly, but then suffered a series of blows to its business and reputation.
In 2018, a pair of murders committed by contracted drivers spurred a regulatory investigation into its ability to police a vast network used by hundreds of millions. Its shares traded at a 40 per cent discount to its last valuation – even before the pandemic erupted and hobbled its business.
Didi’s stock is trading in the secondary market at about $43 to $49 per share currently, just below the $51 that SoftBank bought in at before the government probe, one source said.
Backed by Tencent Holdings, Didi now operates in 14 countries outside its home base, mostly in Latin America. In August, it began offering ride-hailing services in Russia, marking its first direct foray into Europe and it’s already an investor in Estonia-based Bolt Technology, the continent’s main rival to Uber. Didi would also be competing against apps like Gett, Ola and BlaBlaCar.
Its debut would hand another triumph to SoftBank and founder Masayoshi Son, who have profited from a number of high-profile debuts in recent months including Coupang and DoorDash. The Japanese billionaire made ride-hailing the cornerstone of his startup portfolio, investing more than $20bn in Uber, Didi, Southeast Asia’s Grab and India’s Ola.
Uber, where SoftBank remains the largest shareholder, is an example of how investor sentiment has changed over the past year. The US ride-hailing giant saw its shares plummet early last year, but they have since surged several fold on the prospects of an economic recovery.
Mr Son, who had drawn heavy criticism for investment bets like WeWork, has profited from the market’s recovery and is riding a wave of IPOs from his portfolio. Still to come may be Chinese social media giant ByteDance, valued at an estimated $180 billion, and Indonesia’s Tokopedia.
Mr Son invested more than $10bn in Didi, according to one source. The Chinese startup will not offer the kind of return that SoftBank saw from Coupang or DoorDash. But any return on the Didi investment will likely prove a relief after its long-standing struggles.
The specs: 2018 Jeep Grand Cherokee Trackhawk
Price, base: Dh399,999
Engine: Supercharged 6.2-litre V8
Gearbox: Eight-speed automatic
Power: 707hp @ 6,000rpm
Torque: 875Nm @ 4,800rpm
Fuel economy, combined: 16.8L / 100km (estimate)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
MATCH INFO
France 3
Umtiti (8'), Griezmann (29' pen), Dembele (63')
Italy 1
Bonucci (36')
What is graphene?
Graphene is a single layer of carbon atoms arranged like honeycomb.
It was discovered in 2004, when Russian-born Manchester scientists Andrei Geim and Kostya Novoselov were "playing about" with sticky tape and graphite - the material used as "lead" in pencils.
Placing the tape on the graphite and peeling it, they managed to rip off thin flakes of carbon. In the beginning they got flakes consisting of many layers of graphene. But as they repeated the process many times, the flakes got thinner.
By separating the graphite fragments repeatedly, they managed to create flakes that were just one atom thick. Their experiment had led to graphene being isolated for the very first time.
At the time, many believed it was impossible for such thin crystalline materials to be stable. But examined under a microscope, the material remained stable, and when tested was found to have incredible properties.
It is many times times stronger than steel, yet incredibly lightweight and flexible. It is electrically and thermally conductive but also transparent. The world's first 2D material, it is one million times thinner than the diameter of a single human hair.
But the 'sticky tape' method would not work on an industrial scale. Since then, scientists have been working on manufacturing graphene, to make use of its incredible properties.
In 2010, Geim and Novoselov were awarded the Nobel Prize for Physics. Their discovery meant physicists could study a new class of two-dimensional materials with unique properties.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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COMPANY%20PROFILE
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
'Dark Waters'
Directed by: Todd Haynes
Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper
Rating: ****
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Vault%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202023%3Cbr%3E%3Cstrong%3ECo-founders%3A%20%3C%2Fstrong%3EBilal%20Abou-Diab%20and%20Sami%20Abdul%20Hadi%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EAbu%20Dhabi%3Cbr%3E%3Cstrong%3ELicensed%20by%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Global%20Market%3Cbr%3E%3Cstrong%3EIndustry%3A%20%3C%2Fstrong%3EInvestment%20and%20wealth%20advisory%3Cbr%3E%3Cstrong%3EFunding%3A%20%3C%2Fstrong%3E%241%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EOutliers%20VC%20and%20angel%20investors%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E14%3Cbr%3E%3C%2Fp%3E%0A
More from Rashmee Roshan Lall
Expert advice
“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”
Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles
“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”
Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre
“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”
Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Saturday's schedule at the Abu Dhabi Grand Prix
GP3 race, 12:30pm
Formula 1 final practice, 2pm
Formula 1 qualifying, 5pm
Formula 2 race, 6:40pm
Performance: Sam Smith
