Ride-hailing Company Dida Chuxing Files for IPO in Hong Kong

(Source: Sohu)

Chinese ride-hailing and carpooling startup Dida Chuxing on Oct. 8 filed for an initial public offering on the Hong Kong Stock Exchange, sponsored by Haitong International Capital Ltd. and Nomura International (Hong Kong) Ltd.

The prospectus submitted revealed that the company’s total amount of transactions is 11 billion yuan and the operating income increased approximately 12 times from 2017 to 2019.

Dida became profitable in terms of adjusted net profit in 2019, obtaining a net profit of 172 million yuan in 2019 and 151 million yuan in the first half of 2020 with an adjusted net profit margin of 29.7% and 48.6%, respectively.

As of Aug. 31, 2020, the platform had 180 million registered users.

Also, Dida provides carpooling in 366 cities across the country, with about 19.2 million registered and 9.8 million certified carpooling drivers as well as 36.7 million passengers of the service as of June 30 this year.

According to a Frost & Sullivan Report in 2019, Dida owns a carpooling market share of 66.5% in China, ranking the first in the number of carpooling rides last year.

The IPO in Hong Kong is also backed by Chinese leading EV manufacturer Nio Inc. as well as private equity and investment firm IDG Capital.

Back in January this year, Bloomberg reported that Dida Chuxing was seeking to raise as much as $300 million, which would escalate the competition with its biggest domestic rival Didi Chuxing, another Chinese ride-hailing unicorn.

SEE ALSO: Chinese Ride-hailing Company Dida Chuxing Rumored to Raise $300 Million in Pre-IPO Round

Dida’s latest round of financing was its Series D backed by Shanghai-based Nio Capital with an disclosed amount in March 2017.