Chinese ride-hailing giant Didi Chuxing says it has no timetable for Hong Kong IPO

Chinese ride-hailing giant Didi Chuxing says it has no timetable for Hong Kong IPO

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Chinese ride-hailing giant Didi Chuxing, whose New York initial public offering (IPO) in 2021 triggered a cybersecurity investigation by mainland authorities that led to its delisting and a $1.2 billion fine, said it has no specific timing for its plans to float shares in Hong Kong.

“The company has been maintaining regular communications with investors to keep them updated on business progress,” a Didi representative said on Tuesday, after a recent report by The Information said the Chinese company aims to go public again next year in Hong Kong. “Regarding the IPO, there is no timetable at present.”

The Beijing-based firm, operator of the most popular ride-hailing service in China, said it is “currently focused on continuously developing our main business, better serving riders, drivers and partners, and constantly improving product services and innovation capabilities to create long-term value for the industry and society”.

Didi had planned to list in Hong Kong this year, having kept a close eye on the progress made by Alibaba Group Holding’s Cainiao Smart Logistics Network, which was pursuing an IPO in the city before calling if off in the first quarter, according to a person close to the ride-hailing giant, who requested anonymity to discuss private business matters.

The source said Didi had been referencing Cainiao as an indicator of China’s regulatory environment and market conditions. Joe Tsai, chairman of South China Morning Post owner Alibaba, said in a post-earnings conference call in March that the market would not “reflect the true intrinsic values” that Cainiao can bring to Alibaba.

Didi announced late last year a plan to buy back up to US$1 billion of its shares over two years. The company was pursuing a Hong Kong IPO in 2024, Bloomberg reported at the time.

Chinese authorities shocked investors in July 2021 by launching an unprecedented cybersecurity review into Didi, two days after it went public in New York under the name Didi Global. Didi completed its delisting process in 2022, shortly before the Cyberspace Administration of China fined it US$1.2 billion for data violations.

Didi’s net loss widened 16.7 per cent to 1.35 billion yuan (US$186 million) in the first quarter this year, while revenue rose 14.9 per cent to 49.1 billion yuan.

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