A few years ago, U.S. ride-hailing giant Uber and its Chinese rival Didi were embroiled in a costly rivalry with Asian countries. After fierce financial competition, Uber sold its China-based business to Didi, focusing on other markets. The two agencies are bowing their heads again, though; Didi is looking at the list in the US. The company’s IPO filing for Didi’s partnership from previous transactions was big news for Softbank Vision Fund, Tencent and Uber.
However, it seems that the price will be set higher than Didi’s Uber. By a few billion billion dollars, it turns out. And why we don’t understand enough. This week, Didi indicated that it would target the IPO price of $13 to $14 per share, with each share of the company’s Class A price in the U.S. market at one-fourth of its price. In more technical terms, each ADR sister has 25% of her normal share in Class A, if you like it.
Didi could earn $4.03 billion after selling 288 million shares in a US IPO, a huge amount. What is the price of $13 to $14 dollars per ADR? Didi is valued at $62.3 billion to $67.1 billion using unlisted shares. With vested options and shares that can be issued thanks to such choices, Didi could be worth as much as $70 billion; Renaissance Capital d calculates the company’s midpoint valuation using a completely thin share calculation at $67.5 billion.
No matter which number you choose, Didi is not ready to challenge Uber’s own assessment. Yahoo Finance raised Uber to $95.2 billion this morning. Why is the Chinese company less valuable than its previous rival? Let’s find out by digging out their numbers as a reminder, Uber’s Q1 2021 included $3.5 billion in consolidated revenue, an 8% increase over the previous quarter. Uber’s adjusted EBITDA came for it. Why is the Chinese company less valuable than its previous rival? Let’s find out by digging out their numbers as a reminder, Uber’s Q1 2021 included $3.5 billion in consolidated revenue, an 8% increase over the previous quarter. Uber’s adjusted EBITDA came for it.
