Shares of Didi, China’s largest riding firm, rose nearly 19 percent in its debut on the New York Stock Exchange on Wednesday, valuing the Chinese company’s largest U.S.-listed giant since 2014 at $ 80 billion.
Didi shares, backed by SoftBank, opened at $ 16.65, while the starting price of the shares was $ 14. It raised $ 4.4 billion, valuing an expanded offering of 316.8 million U.S. depository shares at the top of the $ 13 to $ 14 range.
Didi’s list in New York will be the Chinese company’s largest share sale in the U.S. since Alibaba raised $ 25 billion in 2014.
So far this year, the largest Chinese list in the United States is the Full Truck Alliance, called Uber for Trucks, which is worth $ 1.6 billion.
Didi, supported by technology investment giants Alibaba, Tencent and Uber, was founded in 2012 by Dhen Dache, an app for taxis, by Cheng Wei. Didi merged with his peer Kuaidi Dache to become Kuaidi and was later renamed Didi Chuxing.
According to Forbes, Chen Igidi, who was born in 1983 in a small town in the southeastern province of Jiangxi and worked as an assistant to the head of a foot massage firm, was valued at $ 1.2 billion before his market debut.
At its debut price, Cheng’s stake in Didi is worth $ 5.22 billion. He got the idea of a pedestrian platform to ride on a icy winter night in Beijing when he had trouble riding in a taxi.
SoftBank is Didi’s largest investor, owning a 20.2% stake in the company after the IPO. Tencent retains 6.4% and Uber retains 12% Didi. Cheng owns a 6.5 percent stake in the company he founded.
Didi, the world’s largest mobile-technology platform, bought its rival Uber’s Chinese business in 2016, and the San Francisco-based company retained its stake in Didi at the time.
The company has decided to invest $ 1 billion in the auto service business in 2018, which is part of a rebranding of a large portion. He has also invested heavily in expanding his business beyond his domestic market or by investing in local partners or launching their services.
Didi has a dominant position in the online riding business in China and operates 4,000 locations across 16 countries. According to recent documents, it has more than 490 million active users annually.
Its offerings include private car tracking, bike sharing, delivery, freight and logistics and financial services.
Didi’s list is also the latest Chinese firm to open up U.S. capital markets amid tensions between Washington and Beijing.
Despite political sparring, 29 Chinese firms raised $ 7.6 billion from U.S. IPOs in the first six months of the year, according to Refinitive.
Morgan Stanley Investment Management had expressed interest in subscribing to Didi’s IPO for up to $ 750 million and Singapore’s $ 500 million stake in Temasek.
Goldman Sachs (Asia), Morgan Stanley and JPMorgan were the leading underwriters.