China\`s Didi raises $4.4b in upsized U.S. IPO

Chinese ride hailing company Didi Global Inc raised $4.4 billion in its U.S IPO on Tuesday_ pricing it at the top of its indicated range and increasing the number of shares sold_ according to two sources familiar with the matter.

Didi sold 317 million American Depository Shares (ADS)_ versus the planned 288 million_ at $14 apiece_ the people said on condition of anonymity ahead of an official announcement.

This would give Didi a valuation of about $73 billion on a fully diluted basis. On a non-diluted basis_ it will be worth $67.5 billion. The company is expected to debut on the New York Stock Exchange on June 30.

The increase in deal size came after the Didi investor order book was oversubscribed multiple times_ one of the sources said.

Investors have been told to expect their orders to be scaled back once allocations are completed on Wednesday_ according to a separate source with direct knowledge of the matter.

Didi did not respond to a request for comment.

The listing_ which will be the biggest U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014_ comes amid record IPO activity this year as companies rush to capture the lucrative valuations seen in the U.S. stock market.

Didi's IPO is more conservative than its initial aim for a valuation of up to $100 billion_ Reuters has previously reported. The size of the deal was cut during briefings with investors ahead of the IPO's launch. read more

This suggests increasing investor worries about China's potential anti-trust related crackdown and a more volatile IPO environment globally in 2021_ said Douglas Kim_ a London-based independent analyst_ who writes on Smartkarma.

"But it seems like many investors like this deal_ the volatile IPO environment helped to lower IPO price and valuation looks attractive_" Kim told.

Didi's IPO was covered early on the first day of the book-build last week and the investor books were closed on Monday_ a day ahead of schedule.

An over-allotment option_ or greenshoe_ exists where another 43.2 million shares can be sold to increase the deal size.