Home Views Tech

What DiDi's IPO flop means for Grab and GoTo

Assif Shameen
Assif Shameen7/2/2021 7:0 AM GMT+08  • 9 min read
What DiDi's IPO flop means for Grab and GoTo
It had been billed as the “IPO of the year” and the largest China listing in the US since e-commerce giant Alibaba Group Holdings.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Picture: Bloomberg

It had been billed as the “IPO of the year” and the largest China listing in the US since e-commerce giant Alibaba Group Holdings’ debut in 2014. Yet, when the Beijing-based DiDi Global, the “world's largest mobility technology platform”, began wooing investors in a virtual road show two weeks ago, it was clear that there was little enthusiasm for yet another ride-hailing firm, even if it was the “Uber of China”. Even a last-minute attempt to drum up interest by touting DiDi’s global ambitions to become the “largest one-stop transportation platform” and the operator of biggest vehicle networks on earth was not enough to move the needle.

On June 30, after surging 29% in the first few minutes of trading, DiDi’s stock closed at US$14.14 ($19), just 1% above its offering price, or 12% more than its last private funding round two years ago. Goldman Sachs, JPMorgan and Morgan Stanley were hard at work to help support DiDi’s stock and prevent a fall below the IPO price on its debut day at the New York Stock Exchange. For ride-hailing investors, it seemed like déjà vu all over again. Uber priced its own IPO at US$ 45 a share in May 2019 before it plunged 56% ten months later at the start of the pandemic. Uber’s stock has been hovering around US$50 in recent days or 2.5% more than what most venture capital firms paid for its funding round more than six years ago.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.