China’s top ride-hailing firm Didi Chuxing is leaning toward picking New York over Hong Kong for its initial public offering (IPO), eyeing a valuation of at least $100 billion via the float, reported Reuters.
Didi has also discussed the option of listing via a special-purpose acquisition company (SPAC), multiple sources told Reuters, which would involve merging with a blank-check firm that raises capital through a US IPO. But they said the SPAC option was seen by Didi as less viable given its valuation target.
At that valuation target, Didi could raise about $10 billion if it sells 10% of its shares, in what would be the biggest Chinese IPO in the United States since Alibaba’s $25 billion float in 2014.
A fifth person close to Didi told Reuters that the company is also considering a second listing in Hong Kong if its US IPO takes place.