36.31 0.00 (0.00%)
After hours: 4:42PM EDT
(Bloomberg) -- Didi Chuxing has begun discussions with investment bankers about an initial public offering in Hong Kong next year that could value the Chinese ride-hailing leader at $60 billion, Reuters reported, citing unidentified people.The startup initiated the talks after it began generating a profit during the second quarter, it reported. Didi’s also considering a new fundraising round ahead of an IPO to boost its valuation, Reuters said.“Didi does not have any definitive IPO plan and we don’t comment on market speculation,” a Didi representative said in a statement to Bloomberg on Tuesday.Didi, backed by SoftBank Group Corp. and Tencent Holdings Ltd., had fought off Uber Technologies Inc. in China and seen its valuation climb to $56 billion. But it has struggled to sustain growth in the face of a regulatory crackdown and then the Covid-19 pandemic.Its shares were said to have traded privately at a discount to its peak valuation of as much as 40%, Bloomberg reported in January. Uber’s own IPO last year proved disappointing, raising questions about prospects for the sector.Didi Fights to Prove It’s More Than Just China’s UberStill, the initial public offering market has heated up this year, particularly in Hong Kong. JD.com Inc. and NetEase Inc. have raised billions in the market, while smaller companies such as Yeahka Ltd. have seen their shares soar with strong demand.Didi, also backed by Alibaba Group Holding Ltd., has been reported to be considering an IPO for years by a variety of media outlets. The Beijing-based company targeted an offering in 2017, Bloomberg News reported the year before.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Uber Technologies (UBER) closed at $34.22 in the latest trading session, marking a +1.48% move from the prior day.
A report published in Axios Friday, citing "multiple sources," said the ride sharing giant is "seeking strategic alternatives," for its Uber Elevate unit. According to Axios, Elevate currently employs around 80 people. On the Elevate website, Uber writes ambitiously that it "is developing shared air transportation -- planned for 2023 -- between suburbs and cities, and ultimately within cities."