Home » The Chinese Uber redeems itself after debut without sprint on Wall Street, worth almost $ 80 billion

The Chinese Uber redeems itself after debut without sprint on Wall Street, worth almost $ 80 billion

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Didi, the Chinese Uber lands on Wall Street, qualifying as the largest listing of a Chinese company since Alibaba’s in 2014. Founded in 2012, Didi is a ride hailing company (in practice, taxi on demand via app) and today boasts 41 million average daily transactions. In 2018 it began expanding internationally and currently operates in 14 countries outside of China, with Brazil and Mexico being the largest contributors.

Didi: from problems in China to landing on Wall Street

The company recently got approval to test self-driving vehicles in Beijing but is also facing some problems at home. China’s antitrust authority is investigating whether Didi has used competitive practices that have unfairly pushed out smaller competitors, Reuters reported. The company’s pricing mechanism is under observation. In detail, Didi reported an overall loss of $ 2.54 billion out of $ 21.63 billion in revenue last year. In comparison, Uber lost $ 6.77 billion on $ 11.14 billion in revenue last year, and lost $ 108 million on revenue of $ 2.90 billion in the first quarter of 2021. Between 2019 and 2020, Didi’s revenue shrank by nearly 10% as the Covid pandemic hit China hard last year. However, before the pandemic, revenue grew 11% between 2018 and 2019. In addition, revenue rebounded in the first quarter as the pandemic recovery is in full swing, with 107% growth in the first quarter compared to to that of the previous year.

2021 is proving to be a record year for the IPO market and the US market remains a favorite. Among the various quotes to keep an eye on, that of the Chinese Uber stands out, which has chosen the American market, demonstrating once again that institutional and retail investors are ready to support these startups in their public offer. Second Antonio De Negri, Founder and CEO of Cirdan Capital, the already rising price gives confidence to this startup, which has dominated the ride sharing market in China and wants to expand globally.

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The company’s stock began trading at $ 16.65 per share, up about 19% from the company’s offering price of $ 14 per share, bringing its market cap of nearly $ 80 billion. Didi then closed trading on its debut day at $ 14.14 per share, up 1% and with a market cap of approximately $ 67.8 billion.

It was recently valued at $ 62 billion after a fundraising round in August, according to data from PitchBook. With balance sheets still at a loss and similar companies still struggling to grow in value on the market, it will be interesting to see if Didi manages to maintain the value achieved in today’s offer in the future concludes De Negri.

Today, the stock is still trying to flex its muscles by currently scoring nearly + 13% at $ 16.

The ride sharing industry has seen Uber and Lift go public in 2019 but the stocks have never achieved excellent performances in recent years. Lyft, at $ 61 today, remains below the opening price of $ 78 on the day of the IPO. Uber, which had seen a very slowed offer with a price just above $ 41, has halved its value in recent years and then returned today to $ 51 and a capitalization of 95 billion.

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