Chinese ride-sharing giant Didi Chuxing on Thursday filed an application to go public in what could be one of the biggest tech IPOs this year, positioning large shareholders Uber and SoftBank for a win.
The company reported $ 21.6 billion in revenue last year. It also posted a gain this last quarter of $ 6.4 billion in revenue. Specifically, the company reported net income of $ 837 million before certain payments to shareholders and comprehensive net income of $ 95 million for the quarter.
Uber owns 12.8% of the company’s shares after selling its Chinese ride-sharing business to Didi in 2016, while SoftBank’s Vision Fund holds 21.5%.
Between 2019 and 2020, Didi’s revenue fell nearly 10% when the Covid pandemic hit China hard last year. However, before the pandemic, revenue grew 11% between 2018 and 2019. Additionally, revenue recovered in the first quarter as the recovery from the pandemic is in full swing, with growth of 107% in the first quarter compared to the quarter of the previous year.
Part of the company’s first quarter profitability can be credited to investment gains of $ 1.9 billion related to spin-offs and divestitures.
For comparison, Uber reported a net loss of $ 108 million on revenue of $ 2.90 billion in its first quarter. For all of 2020, Uber’s net losses amounted to $ 6.77 billion on $ 11.14 billion in revenue.
Didi was most recently valued at $ 62 billion following a fundraising round in August, according to PitchBook data, and is backed by investment giants such as SoftBank, Alibaba and Tencent. Bloomberg reported that the company could be valued at $ 100 billion at the time of its IPO.
The list, which could be one of the biggest tech debuts globally this year, comes as demand from travel and transportation companies returns due to a decline in Covid-19 cases and the launch of vaccines. Their US counterparts, Uber and Lyft, have said they will be profitable on an adjusted basis by the end of this year, thanks to the recovery.
Didi acquired Uber’s business in China in 2016 in a complicated transaction that involved both companies taking shares in each other. Didi said he sold all of his shares in Uber in November and December of last year.
Founded in 2012, Didi said it has 493 million annual active drivers and 15 million annual active drivers. Didi has been named four times on the CNBC Disruptor 50 list.
(The exact company name registered with the F-1 is Xiaoju Kuaizhi). Goldman Sachs, Morgan Stanley and JP Morgan are underwriting.
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