CCP’s State-Owned Companies Shadow Chinese Ride-Hailing Company’s US IPO
Commentary The Chinese ride-hailing giant Didi Chuxing (Didi) filed an initial public offering (IPO) in the United States on June 10. At the same time, the Chinese Communist Party’s (CCP’s) antitrust investigation of Didi was also reported. According to Didi’s prospectus (registration statement) filed with the Securities and Exchange Commission, the regime’s state-owned companies played […]
Commentary The Chinese ride-hailing giant Didi Chuxing (Didi) filed an initial public offering (IPO) in the United States on June 10. At the same time, the Chinese Communist Party's (CCP's) antitrust investigation of Didi was also reported. According to Didi's prospectus (registration statement) filed with the Securities and Exchange Commission, the regime’s state-owned companies played an important role in the process of Didi's monopoly in China. Prior to the IPO, Didi had raised a total of $23.2 billion in funding over 24 rounds. Their latest funding was raised on April 9, 2021, from a debt financing round, according to a public report. The prospectus showed Didi’s top three shareholders were SoftBank (21.5%), Uber (12.8%), and Tencent (6.8%). But, Didi listed risks related to doing business in China, especially in relation to the regime’s recent anti-monopoly regulations. It completed the self-inspection and admitted that the results might not be satisfactory and the ...
