Didi Chuxing files for IPO

Chinese ride-hailing company, Didi Chuxing, has filed for its first initial public offering.

Founded in 2012, Chinese-based taxi company, Didi Chuxing, filed for an initial public offering (IPO) and it could potentially be the biggest IPO of 2021, benefitting its top shareholders, Uber and SoftBank immensely.

Didi Chuxuing recorded $21.6 billion as profit in 2020. For its first-quarter report of 2021, Didi Chuxuing declared a net profit of $95 million after making payouts to its stakeholders.

In 2016, Uber sold its Chinese ride-hailing business to Didi then proceeded to buy 12.8% of its shares. SoftBank on the other hand owns 21.5% of Didi Chuxing’s shares.

The COVID-19 pandemic lockdown affected Didi’s profit negatively, causing a 10% drop due to the heavy presence of the virus in China. Following the easing of the lockdown, the company’s profit has increased by 107% in 2021.

Financial analysts have predicted that Didi’s users will be the first beneficiaries of its IPO listing if it goes through.

Didi Chuxuing is exploring the possibility of creating self-driven taxis and is currently test self-driven vehicles in Beijing, China.