Didi IPO set to boost China listing frenzy in U.S.

didi chuxing

Ride-hailing giant Didi Chuxing’s planned $4 billion New York debut will supercharge Chinese listings in the United States on the back of an all-time high in the first half the year, despite political sparring between the two countries.

A total of 29 initial public offerings (IPOs) by Chinese companies in the United States in the first six months of the year raised $7.6 billion, the highest amount ever for that time period, according to Refinitiv data.

That was significantly higher than the $1.9 billion worth of listings in the same time period last year when Chinese firms were more cautious about uncertainties over the economic fallout from the coronavirus pandemic.

The rush of listings happened despite continued political tension between the two countries under President Joe Biden, and the looming threat of U.S. kicking out Chinese companies if they fail to meet auditing standards.

There are now 10 companies with public filings to list in the United States, the largest being Didi which is aiming to raise $4 billion for a valuation of more than $60 billion. The 29 listings so far in 2021 compares with just 13 at the same time last year, according to the data.

The Biden administration has pressed on with the Holding Foreign Companies Accountable Act, signed into law by then-President Donald Trump in December, which is aimed at removing Chinese companies from U.S. exchanges if they fail to comply with American auditing standards for three years in a row.

The biggest Chinese listing in the United States so far this year was Full Truck Alliance, sometimes referred to as “Uber for trucks”, which raised $1.6 billion earlier this week. E-cigarette company RLX Technology followed closely behind, raising $1.4 billion in January.

Didi is expected to be the biggest U.S. IPO this year.

The share sale, which will price on Tuesday, will also be one of the biggest by any Chinese company in the United States since Alibaba raised $25 billion in 2014.

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