The basics you need to know about DiDi Chuxing’s IPO, the potential world’s biggest IPO this year.
Didi Chuxing, China’s dominant ride-hailing app, has filed to go public in the US, potentially setting the stage for one of world’s biggest IPOs this year. The company, Reuters reports, is expected to raise about $10 billion and seek a valuation of about $100 billion.
That means investors will be able to buy Didi shares through Tiger Brokers as it offers US-listed stocks. You might be eligible to participate in DiDi Chuxing’s IPO if you meet the New Zealand wholesale or eligible investor requirements. Note that this offer is only available to wholesale and eligible investors and is not suitable for retail investors. The requirements to meet the wholesale and eligible investor criteria are described in the Financial Markets Conduct Act 2013. Click here to learn more about these requirements.
What we know about the DiDi Chuxing IPO
Didi Chuxing is among the most popular ride-hailing platforms in China, backed by the likes of Alibaba, Softbank and Tencent. The IPO is expected to launch soon, but no official date has been confirmed. In 2017, the company was worth $56 billion and it’s tentatively targeting a $100 billion valuation for its IPO launch.
About DiDi Chuxing
Didi Chuxing was founded in 2012 and is headquartered in Beijing, China. It operates as a mobile transportation platform, offering a variety of services that include ride-hailing, ride-sharing, bike-sharing and more. It serves over 10 billion passengers annually across China, New Zealand, Japan, Australia, Russia and Latin America.
The nine-year-old firm has a growing line of businesses like bike-sharing, grocery, intra-city freight, financial services for drivers, electric vehicles, and Level 4 robotaxis, which it describes as “the pinnacle of our design for future mobility” because of its potential to reduce costs and increase safety.
In 2016, Didi acquired Uber China, partnered with TripAdvisor and broke records by offering over 11 million private-car rides and 14 million orders in a single day.
As more information is released ahead of its IPO, investors will have the opportunity to learn more about the company.
How to buy shares in DiDi Chuxing when it goes public
Once DiDi Chuxing goes public, you’ll need a brokerage account with access to the US stock market to invest. Consider opening a Tiger Prime account today so you’re ready as soon as the stock hits the market. Click here to open a Tiger Prime account and get 5 commission-free trades.^
Retail investors will only be able to submit an order for shares of DiDi Chuxing once it is live. This is often an unknown time after the market opens once the pre-listing auction is complete. While the stock page may be visible on the Tiger Trade App, no orders can be placed until the stock is officially trading.
To open a Tiger account, you’ll need to complete an application with your personal and financial details, like your ID and bank statement, and to fund your account with a bank transfer. It takes about 2-3 days normally to get all of these done. With your account opened and funded, you’ll then be ready to buy shares of DiDi Chuxing once it goes public.
How to participant in DiDi Chuxing IPO from New Zealand
Tiger Brokers only offers its wholesale and eligible investors an opportunity to participate in DiDi Chuxing IPO from New Zealand.
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.
In New Zealand, an Initial public offering (IPO) is considered as a “regulated offer”, and information about that IPO must be disclosed in a product disclosure statement (PDS) and on the Disclose Register. Together, this information must include all material information about the offer of a financial product and be up-to-date, accurate and understandable. The purpose of the information is to assist investors with their investment decisions.
Tiger Brokers is able to offer our wholesale and eligible investors clients to participate in HK & US stock IPOs. As a result, retail clients are not able to participate in HK & US stock IPO.
You can only participate in an HK & US stock IPO if you are a wholesale or eligible investor as defined by Financial Markets Conduct Act 2013. Click here to learn more.
Benefits and Risks of IPOs
Participants to an IPO stand the chance of getting hold of a stock while it’s at its potential low price. The IPO offers investors the opportunity to make capital growth in the short term or preferably by a long term investment growth strategy. That said, investing in an IPO comes with different risks compared with a company that has been listed for a longer period. The value of shares following an IPO can significantly fall as well as rise after getting listed.
Investing in an IPO can be particularly risky for an investor. It’s suggested that before you invest in an IPO you seek independent financial advice to see if the investment is suitable and meets your investment needs.
The listing company may predict when it expects to start making profits, but, as with all share market investments, this can depend on many factors that you need to investigate before making an investment decision.
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About Tiger Brokers
Tiger Brokers (NZ) Limited, a New Zealand-registered financial service provider, is the local entity of UP Fintech Holding Limited, known as "Tiger Brokers" (NASDAQ: TIGR), a leading online brokerage firm. The company is committed to serving the best interests of stock investors and being a gateway to build their global portfolios. It offers a feature-rich online trading app designed for self-directed investors to access the thriving stock markets of US, China and Hong Kong, Singapore, and Australia. In 2017, the company was awarded "2017 Fintech 250" by CB Insights and shortlisted for "China Leading Fintech 50" for two years in a row by KPMG China.
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