China’s largest car-sharing company Didi Chuxing has raised $4 billion through IPO in the U.S. stock market, Reuters reported on the 29th.
The offering price is $14 at the top, with 288 million shares sold, Reuters said, citing unnamed sources. Due to the IPO, Didi Chuxing’s corporate value is estimated at $73 billion. Didi Chuxing will begin trading on the New York Stock Exchange on the 30th with ticker code DIDI.
Didi Chuxing IPO is expected to be the largest listed Chinese company in New York since Alibaba, China’s largest e-commerce company. Alibaba raised $25 billion by listing in New York in 2014.
Like most car-sharing companies, Didi Chuxing also failed to make profits for a while, but left $300 million for the first time in the first quarter of this year. It recorded $1.6 billion in losses last year and sales decreased by 8% to $21.63 billion.
This IPO was smaller than some market expectations. Some predicted that Didi Chuxing will raise up to $10 billion with the IPO, which will bring its value to nearly $100 billion.
The smaller-than-expected reduction seems to be due to the Chinese government’s regulatory pressure on large technology companies. Recently, China has been targeting anti-trust regulatory blades against large technology platforms such as Alibaba and Tencent.
Earlier this month, Didi Chuxing also began an anti-trust investigation by authorities, according to Reuters. Didi Chuxing is a large-scale investment company invested by Korean-Japanese investment giants Softbank, Alibaba, and Tencent, which operates in 15 countries in addition to China, with 493 million active users worldwide.