Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. Hong Kong
  4. Hong Kong Stock Exchange
  5. Tencent Holdings Limited
  6. News
  7. Summary
    700   KYG875721634


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Chinese firm Didi's $4 billion IPO books covered on first day of bookbuild - sources

06/25/2021 | 10:13am EDT
FILE PHOTO: Didi headquarters in Beijing

(Reuters) - Chinese ride-sharing giant Didi Global Inc's $4 billion initial public offering (IPO) received enough investor demand to clinch its targeted price range on Friday, vindicating a lowering of valuation expectations, people familiar with the matter said.

The listing in New York, which will be the biggest U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014, is expected to price on Tuesday, and the shares to start trading on Wednesday.

Didi's indicated price range would give it a valuation of $62.4 billion to $67.2 billion. Didi was hoping it could command a valuation of as much as $100 billion, Reuters reported in March.

At the new valuation, Didi would be valued more like its U.S. peer Uber Technologies Inc, rather than Grab, Southeast Asia's biggest ride-hailing and food delivery firm.

Didi not respond to a request for comment on its bookbuilding exercise.

"Many investors still doubt if Didi can maintain a high growth rate for its core ride-hailing business in China," said a prospective investor at one Hong Kong-based hedge fund who asked not to be identified as he was not allowed to speak to media.

"Its market share is already very high in big cities, which means there is limited room for its future growth," the source added.

"It's also challenging for the company to expand in lower-tier cities due to increasing competition from rivals, not to mention the potential impact of a regulatory crackdown."

Didi set a price range of between $13 and $14 per American Depositary Share (ADS), a regulatory filing showed on Thursday, and said it would offer 288 million such shares in the IPO. At the top of the range, the deal will raise $4.03 billion.

An overallotment option could see the company sell an extra 43.2 million shares to raise up to an extra $605 million.

Investor presentations, led by Didi's vice president and head of capital markets, David Xu, will run until Tuesday. The roadshow for a U.S. listing of this size is shorter than the usual 10 days of most.

Morgan Stanley Investment Management has indicated interest in subscribing for up to $750 million worth of stock in the IPO and Singapore's Temasek for $500 million, Didi's updated prospectus shows.

Last week, Reuters reported that China's market regulator had begun an antitrust investigation of Didi, citing sources with knowledge of the matter.

The State Administration for Market Regulation (SAMR) is investigating whether Didi used competitive practices that unfairly squeezed out smaller rivals.

It is also examining whether the pricing mechanism used by Didi's core ride-hailing business is sufficiently transparent.

At the time, Didi said it would not comment on unsubstantiated speculation from unnamed sources.

(Reporting by Scott Murdoch and Julie Zhu in Hong Kong, Anirban Sen and Niket Nishant in Bengaluru, and Yilei Sun in Beijing; Editing by Clarence Fernandez and David Evans)

By Scott Murdoch, Julie Zhu and Yilei Sun

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED 0.83% 193.5 End-of-day quote.-16.81%
DIDI GLOBAL INC. -2.89% 10.08 Delayed Quote.0.00%
MORGAN STANLEY 0.38% 96.6 Delayed Quote.40.42%
SOFTBANK GROUP CORP. -0.73% 6911 End-of-day quote.-14.23%
TENCENT HOLDINGS LIMITED -6.11% 446 End-of-day quote.-20.92%
UBER TECHNOLOGIES, INC. -1.61% 42.79 Delayed Quote.-16.10%
05:48aHANG SENG : Hong Kong Stocks Climb to Two-Week High; Tencent Rebounds from Slump
04:30aHong Kong shares rise on tech, consumer stocks' boost
04:01aTENCENT : State media in China softens tone on online gaming
03:54aByteDance rival Kuaishou to shut down video app Zynn
03:54aKUAISHOU TECHNOLOGY : ByteDance rival Kuaishou to shut down video app Zynn
03:15aMARKETMIND : Peaks everywhere
03:00aTENCENT : tightens controls on video games after Chinese state media criticism
01:22aNAYUKI : China's Nayuki says gets clean chit on food safety after regulatory che..
12:41aTENCENT : China shares rise on tech sector bounce; Hong Kong gains
08/03Chinese State Media Calls For Better Protection of Minors From Internet
More news
Sales 2021 588 B 91 071 M 91 071 M
Net income 2021 149 B 22 985 M 22 985 M
Net cash 2021 130 B 20 081 M 20 081 M
P/E ratio 2021 24,4x
Yield 2021 0,43%
Capitalization 3 532 B 546 B 547 B
EV / Sales 2021 5,78x
EV / Sales 2022 4,66x
Nbr of Employees 89 228
Free-Float 62,4%
Duration : Period :
Tencent Holdings Limited Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TENCENT HOLDINGS LIMITED
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 53
Last Close Price 371,07 CNY
Average target price 606,68 CNY
Spread / Average Target 63,5%
EPS Revisions
Managers and Directors
Hua Teng Ma Executive Chairman & Chief Executive Officer
Chi Ping Lau President & Executive Director
Shek Hon Lo Chief Financial Officer & Senior Vice President
Chen Ye Xu Chief Information Officer
Yu Xin Ren COO & President-Interactive Entertainment Group
Sector and Competitors
1st jan.Capi. (M$)
NETFLIX, INC.-4.73%226 087
PROSUS N.V.-20.08%135 320
AIRBNB, INC.-0.78%88 602
NASPERS LIMITED-13.83%74 684