Didi Chuxing is Reportedly to Pick Goldman Sachs And Morgan Stanley for U.S. IPO...

Didi Chuxing is Reportedly to Pick Goldman Sachs And Morgan Stanley for U.S. IPO- PingWest

Didi Chuxing is Reportedly to Pick Goldman Sachs And Morgan Stanley for U.S. IPO

19 hours ago

Beijing (PingWest)- China’s larges ride-platform Didi Chuxing has picked Goldman Sachs and Morgan Stanley to lead its IPO and plans to submit application for the New York float this month, Reuters reported citing two source familiars with the matter.

Didi, whose major backed includes Alibaba, Tencent and Softbank, is looking to list as soon as July, according to the source.

It is seeking to raise about USD10 billion that will value the company at USD100 billion.

Didi’s listing plan come at the time when Chinese tech companies are accelerating the pace of returning home for listing due to escalating tensions between China and USA.

U.S Securities and Exchange Commission (SEC) started enforcing a new law that threaten delisting overseas companies that consistently fail to comply with U.S auditing standards.

The new law called the Holding Foreign Companies Accountable Act, which requires accounting firms to let U.S regulators reviewing the audits of overseas companies. Those that do not allow their financial statement to be reviewed for three years consecutively could be delisted from US exchanges.

According to data compiled by Refinitiv, Chinese companies raised USD9.6 billion across 22 deals on Hong Kong Stock Exchange in the first two months of 2021, making the highest-ever IPO proceeds raised on the city’s stock exchange for the first two months of January and February.

Didi was considering to bypass U.S stock exchange and list on Hong Kong stock exchange last year as Chinese firm faced political hurdle such as more serious audit requirement from U.S regulators.

Eventually Didi chose to withdraw the Hong Kong plan and has picked New York as the listing venue partly due to concerns that a Hong Kong IPO application could evoke more regulatory scrutiny over Didi’s business practices, including the use of unlicensed vehicles and part-time drivers.

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