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July 2, 2021

The Company Started Strong In The NYSE

Chinese e-hailing giant Didi Global started strong on the first day of its listing on the New York Stock Exchange (NYSE) when it recorded a value of US $ 68.49 billion.

The value was in line with its shares closing 1% higher than its offer price of US $ 14 after declining from a previous profit.

That was the largest listing by a Chinese company in the U.S. since Alibaba’s first listing in 2014.

The company raised US $ 4.4 billion through its initial public offering (IPO).

Didi is the latest company to make huge profits in the soaring United States (US) stock market.

According to financial market data provider Refinitiv, in the first six months of this year, about 29 Chinese companies raised a total of US $ 7.6 billion through IPOs.

The value was recorded despite years of tensions between Washington and Beijing and concerns raised by US authorities over the financial reports of several Chinese companies.

According to a Reuters report in March, Didi initially targeted to reach US $ 100 billion.

But the company's investors voiced concerns about the smoothness and profitability of Didi's expansion plan.

Didi, like most other e-hailing platforms, suffered losses until the company recorded a profit of US $ 30 million for the first three months of this year.

Last year, Didi recorded a loss of US $ 1.6 billion following the COVID-19 pandemic.

Last month, there were reports that Didi was being investigated by Chinese market monitors for allegedly monopolizing the market.

SoftBank Japan is Didi's largest single investor with a stake of over 20%. In addition, Alibaba and Tencent also have stakes in Didi.

Uber owns a 12% stake in the firm after Didi took over Uber China in 2016.