Chinese ride-hailing firm Didi Chuxing is eyeing New York for its initial public offering (IPO) with a valuation of at least $100 billion, according to Reuters.

  • Didi is considering listing via a special purpose acquisition company (SPAC), but this is less viable given its valuation target.
  • At a $100 billion valuation, Didi could raise some $10 billion if it sells 10% of its shares. This would be the biggest Chinese IPO in the U.S. since Alibaba’s $25 billion in 2014.
  • The firm has yet to finalize its listing destination or timeline, with a possibility of a second listing in Hong Kong after a U.S. IPO.
  • The preference for New York comes amid concerns that a Hong Kong application would undergo tighter scrutiny. Shanghai authorities fined Didi for using unlicensed vehicles multiple times in 2019.
  • Another advantage in New York is a more predictable listing pace and higher funding capacity, possible to come in the second quarter.
  • Didi and Hong Kong stock exchange operator HKEX declined to comment on the listing possibility.