Didi Chuxing looking at New York for listing

China’s top ride-hailing firm Didi Chuxing is leaning toward picking New York over Hong Kong for its initial public offering, eying a valuation of at least US$100 billion via the float, two people with direct knowledge of the matter said.

Didi has also discussed the option of listing via a special-purpose acquisition company, multiple sources said, 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 US$10 billion if it sells 10 percent of its shares, in what would be the biggest Chinese IPO in the United States since Alibaba’s US$25 billion float in 2014.

A fifth person close to Didi said the company is also considering a second listing in Hong Kong if its US IPO takes place.

Beijing-based Didi said it doesn’t have a definite plan regarding its listing destination or timeline.

The sources declined to be identified but two of them said the preference for New York as a listing venue partly reflects concerns that a Hong Kong IPO application could run into tighter regulatory scrutiny over Didi’s business practices, including the use of unlicensed vehicles and part-time drivers.

Shanghai authorities fined Didi for using unlicensed vehicles multiple times in 2019. Back then, Didi responded by launching a campaign to improve safety for passengers.