Shares of the China-based ride-hailing giant opened for trading at $16.65 after pricing at $14 on Tuesday evening. They were expected to price between $13 and $14 apiece.
|DIDI||DIDI GLOBAL INC||10.08||-0.30||-2.89%|
Strong demand allowed Didi to sell 316.8 million American depository shares (ADS), up from the planned 288 million shares. One Didi ADS is equal to 25% of one ordinary share. The ADS trade under the ticker symbol DIDI.
Wednesday’s U.S. IPO raised $4.4 billion and valued the company at $73 billion on a fully diluted basis. Didi plans to use the proceeds from its IPO to invest in technology and to fund international growth.
The IPO was the second largest by a Chinese company on a U.S. exchange, trailing only Alibaba’s $25 billion debut in 2014. The offering was led by Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co.
Didi's largest investor is Japanese conglomerate SoftBank, which owns a 20.2% stake. Uber, which exited China after losing out to Didi, controls 12%. China's Tencent holds 6.4%.