China’s top ride-hailing firm Didi Chuxing is eyeing a valuation of at least $100 billion in New York listing, according to Reuters. The company has also discussed the option of listing via a special-purpose acquisition company.
The preference of the New York listing reflects concerns that Hong Kong IPO application could run into tighter regulatory scrutiny over Didi business practices.
In 2019, Shanghai authorities fined Didi for using unlicensed vehicles multiple times, and the company responded by launching a campaign to improve safety for passengers.
Didi also sees the New York IPO as a more predictable listing with a deeper pool of capital as soon as the second quarter.
Despite the option of a SPAC listing, Didi considers it as a less viable option given its valuation target.
Didi also considers a second listing in Hong Kong if its U.S. IPO takes place.
Didi, backed by technology investment giants SoftBank, Alibaba, and Tencent, doesn’t have a definite plan regarding its listing destination or timeline.
