China’s Didi valued at $55 billion for smart transportation layout, 137,500 shares to be transferred

Shanghai (Gasgoo)- Chinese ride-hailing giant Didi Chuxing's 137,500 shares are to be transferred through public market, according to a statement released on July 12 by Shanghai United Assets and Equity Exchange.

The proportion of the to-be-transferred shares to overall equity has not been exposed yet.

(Photo source: Shanghai United Assets and Equity Exchange)

According to the statement, the capital market values Didi at $55 billion due to its future deployment in fields like smart transportation. However, the equity will be traded at $47.544 billion and the settlement should be conducted overseas.

Didi was seeking to raise up to $2 billion from investors, the Wall Street Journal reported on July 17, citing sources form people familiar with the matter.

After this financing round, the Beijing-based company was likely to have a paper valuation of around $62 billion, one of people said.

The Wall Street Journal also reported last year that Didi had considered issuing a convertible bond, as well as launching an IPO. However, Didi’s IPO was not expected until at least next year, people with knowledge of the matter revealed.

The seven-year-old company shut down its hitching service last year after two female passengers were murdered and had to focus on revamping its safety measures.

（Photo source: Didi Chuxing)

But the company still sets foot in new business areas. Didi announced on July 15 it formally opened up its ride-hailing platform to third-party mobility service providers in a bid to converge more mobility resources to meet intensified travelling demands at rush hours.

The announcement came as Didi forged partnership with two state-owned auto groups, FAW Group and Dongfeng Motor Corporation.

Besides, Didi also stepped up the collaboration with GAC Group last month after they forged a strategic partnership in April 2018. This time, both parties are going to conduct collaboration in such areas as vehicle promotion, customized services, operation as well as ride-hailing service and autonomous driving.

（Photo source: Didi Chuxing)

The mobility service provider has recently launched luxury car service “Didi Luxe”, which uses such models as the Audi A6L, the Mercedes-Benz E-Class and the BMW 5-Series. The service has been available in megacities like Beijing, Shanghai and Shenzhen now.