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A Didi Chuxing autonomous taxi during a pilot test drive on the streets in Shanghai.
Hector Retamal/AFP/Getty Images
Didi Global,
the Uber of China, delivered one of the year’s biggest IPOs, raising $4.4 billion.
On Wednesday, shares of Didi (ticker: DIDI) opened at $16.65, reached a high of $18.01 and then dropped. The stock tumbled to a low of $14.10, a dime above its IPO price. This means Didi traded close to its $14 offer price and was in danger of being considered a broken deal if it drops further. In late afternoon trading, the stock rebounded and recently changed hands at $14.69, up nearly 5% from its offer price.
The muted performance came during a busy day for IPOs. Didi was one of 10 companies that opened for trading on Wednesday.
The Chinese ride-hailing behemoth said it sold 316.8 million American depositary shares at $14, the top of its $13-to-$14 price range. Four such shares represent one class A ordinary share. The company announced on Wednesday morning that it had increased the size of the deal; it had planned on offering 288 million shares.
At $14.69 a share, Didi’s valuation stood at $76.4 billion on a fully diluted basis.
SentinelOne
(S), the AI-powered cybersecurity platform, also began trading Wednesday. The stock kicked off at $46 and hit a high of $46.50. It recently traded at $42.10, up 20% from the offer price.
On Tuesday, SentinelOne collected $1.2 billion after selling 35 million shares at $35 each, above its expected price range. SentinelOne had filed to offer 32 million shares at $26 to $29 each, which it boosted to $31 to $32 a share on Monday.
Goldman Sachs, Morgan Stanley, and J.P. Morgan are the underwriters on the Didi offering.
Didi provides a smartphone app that lets users connect with vehicles and taxis for hire. Founded in 2012, it operates in nearly 4,000 cities, counties, and towns across 16 countries, its prospectus said. It had more than 493 million annual active users as of March 31.
At $4.4 billion, Didi is the year’s second biggest IPO. Coupang (CPNG), which collected about $4.6 billion in March, remains the year’s largest IPO, Dealogic said.
Write to luisa.beltran@barrons.com
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