Chinese ride-hailing player Dida revives US$200 million IPO
DIDA is considering raising about US$200 million through a planned Hong Kong initial public offering (IPO), said sources familiar with the matter. This would pave the way for the first listing by a Chinese ride-hailing startup since larger player Didi Global’s ill-fated share sale in 2021.
Dida refiled for the IPO on Monday (Feb 20), without providing any details on the fundraising size and timeline in its preliminary prospectus. The sources explained that deliberations were ongoing, and those details could still change.
The startup could list in Hong Kong as soon as in June, said the sources, who declined to be identified as the information is private. They added that Dida had obtained assurances from Chinese regulators for the share sale to go ahead.
Dida’s earlier failed attempts at an IPO coincided with Didi Global’s US$4.4 billion first-time share sale in the US, in the middle of 2021. That sale was carried out against Beijing’s wishes.
Didi Global soon became the highest-profile company at the heart of a clampdown on the Internet industry, and was forced to delist from the US’ bourses.
Didi Global’s main apps returned to China’s biggest mobile stores last month. The move is a prerequisite for the company to resume business as usual, and to eventually work towards a listing in Hong Kong.
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The latest refiling by Dida is a sign that the longstanding chill on listings by ride-hailing companies could be coming to an end. In October 2020, Didi Global filed two applications for a listing in Hong Kong, but neither of those came to fruition.
Separately, several media outlets, including the Beijing Daily, reported in January that China was planning to launch a government-backed app to integrate a variety of services, including ride-hailing.
Founded in 2014, Dida runs ride-hailing services for private cars and smart taxis, it said in its preliminary prospectus. The startup counts Nio Capital, IDG Capital and JD.com among its investors.
Its revenue fell by 27 per cent to 428 million yuan (S$83.4 million) for the first nine months of 2022, when China was still enforcing stringent Covid restrictions. Its profit for the same period slumped by 92 per cent to about 75 million yuan as the company increased subsidies to private car owners, to incentivise them to cruise in the streets.
China International Capital Corporation, Haitong International and Nomura Holdings are arranging Dida’s IPO. A representative for the startup declined to comment. BLOOMBERG
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