Didi shares jump 12% day after modest market debut

Traders work during the IPO of Chinese ride-sharing company Didi Global Inc on the floor of the New York Stock Exchange (NYSE) in New York City, USA, June 30, 2021.

Brendan McDermid | Reuters

Shares of Didi Chuxing rose more than 12% on Thursday morning, a day after the ridesharing giant made its modest debut on the market.

The company’s shares began trading at $ 16.65 a share on Wednesday after trading at $ 14 apiece, and were up 28.6% on the day. However, traders pulled out of double-digit gains and the stock closed just 1% higher at $ 14.14.

With Thursday’s earnings, the company’s market capitalization jumped to more than $ 76 billion.

Didi’s listing on the New York Stock Exchange comes as demand for private transportation services skyrockets along with the drop in Covid-19 cases and the deployment of vaccines. Didi will also be added to the FTSE global stock indices starting July 8.

Didi, which was founded in 2012, said in its initial public offering prospectus that it has 493 million annual active passengers and 41 million average daily transactions. It began expanding internationally in 2018, and the company now operates in 14 countries outside of China, with Brazil and Mexico being the largest contributors, according to a Loop research note from earlier this month.

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