China’s Didi sold 317 million American Depository Shares (ADS) higher than initially planned 288 million shares at a price of $14, raising $4.4 billion, according to a report by Reuters on Friday.
- The increased shares would give China ride-hailing firm a valuation of close to $73 billion on a diluted basis and $67.5 billion on a non-diluted basis.
- Didi’s initial public offering is more conservative compared to the initial projected value of over $100 billion.
- Investors resisted the $100 billion target considering the concerns over the future growth prospects as authorities continue to increase regulation of the ride-sharing industry.
Historically, Didi has been unprofitable, until it recorded a profit of $30 million in the first quarter of 2021. Last year, the company reported a loss of $1.6 billion and 8% decline in revenues to $21.63 billion.