Didi Chuxing, a leading ride-hailing Chinese firm, is targeting a valuation of more than $60 billion ahead of IPO launch scheduled for the first half of 2021, according to Reuters. The company posted favorable earnings in Q2, and investors are keen to cash in its IPO. Didi is also considering a new fundraising ahead of the IPO to boost valuation. 

  • Didi has started talks with investment banks for the long-awaited IPO and will appoint lead banks for the IPO in the coming months. 
  • Didi had targeted a New York listing but has opted for Hong Kong amidst weakening US.-China relations. 
  • Uninspiring stock performances by other ride-hailing firms such as Uber and Lyft have discouraged Didi from seeking a U.S. IPO.
  • Didi shares are trading below the $56 billion valuations reached in 2017

Didi’s IPO would pronounce Hong Kong’s status as a capital markets hub, with above $28.8 billion IPOs and secondary listings in the city since the start of the year.