Didi Chuxing Technology Co., Ltd. is a company that designs, develops and operates the taxi booking from a mobile application in China. The company is planning to launch an initial public offering (IPO) worth US$ 80 billion.
The news was covered by the Wall Street Journal, that the company’s investors such as Softbank Group Corp. (SFTBY), Apple Inc., Foxconn Technology Group (HNHPF), and Tencent Holdings Limited (TCEHY) has discussed with bankers regarding the topic.
If Didi pushed the deal, its management team had calculated the value of US$ 70 billion to US$ 80 billion. With this money, the company will try to wrestle with the increasing competition in many parts of Latin America and Asia.
Didi has many local and global competitors in China, such as Meituan-Dianping and Uber. The Uber holds 20 percent stakes in the company.
Earlier, Didi acquired Uber’s business in China until 2016. The Journal said the organization has not decided listing venue and may the IPO delayed for some time. The organization raised the capital of US$ 20 billion, by converting their investments into shares. Alibaba is now one of the New York Stock Exchange-listed company.
It is not the first company which is planning to offer IPO to the public. Previously, Tencent has a plan to launch an IPO in the US until second-half of the year.
The company has partnered with other international rivals to widen their business across China itself. Now, Didi has planned this to expand its business across Mexico and Taiwan, this move will help the company to stand against travel-giant Uber.
However, the company’s move to expand their business across Mexico taking the company out of their home market.
Uber was planning to offer IPO, but it will take too long, at least end of 2019, said Dara Khosrowashani, CEO of Uber.