Didi Global Inc., the Chinese ride-hailing, gears up for a comeback, as Bloomberg reports. After encountering turbulence on the New York stock exchange last year, the company is setting its sights on the Hong Kong stock exchange.
- On the rebound: After their amicable settlement of an 8 billion yuan ($1.1B) fine, Didi has been diligently adhering to the rules set by Chinese regulators, successfully maintaining a dominant share of about 70% in the market, down from 90%.
- Green Signal Pending: The key to Didi’s second listing attempt lies in the approval of Chinese authorities, who previously halted Didi’s New York debut.
- A Glimmer of Hope: Didi’s stakeholders and employees might finally reap the benefits of their investment, despite the initial instability, which saw the valuation of the company nosediving from $80B to $17.3B. Recent times have brought a sigh of relief, with the stock price rebounding 6%, reaching $3.56 last Friday.
- Elite Investors: SoftBank Group Corp., having poured in an enormous $11B into Didi, could recoup some of their losses if Didi’s new public listing succeeds.
- Employee Empowerment: Didi is allowing its employees to sell their shares back to the company in what is perceived as a preparatory step towards the Hong Kong listing.
- Pivoting Strategies: Didi is dialing down on its global expansion, instead shifting focus to Brazil and Latin America where they’ve found success with local strategies.
- Navigating the Financials: Didi managed to curtail its losses and bolstered its revenue by 53% to 48.8 billion yuan in the June quarter, a significant improvement from the same period in the previous year.
Despite some companies facing hurdles with Hong Kong IPOs, Didi appears to be on a promising path. Sharnie Wong, a Bloomberg Intelligence analyst, even predicts a resurgence of Hong Kong’s IPOs next year.
