China's top ride-hailing firm Didi Chuxing has mandated Goldman Sachs and Morgan Stanley to lead its blockbuster initial public offering, two people with knowledge of the matter said.
Didi, backed by Asian technology investment giants SoftBank, Alibaba and Tencent, is looking to list as soon as July, according to the people.
It is eyeing a valuation of at least $100 billion through the IPO. At that valuation, Didi could raise about $10bn if it sells 10 per cent of its shares, making it the biggest Chinese IPO in the US since Alibaba's $25bn float in 2014.
Beijing-based Didi's selection of the two banks shows it is moving forward apace in its listing plans and that the US capital pool remains a big draw for Chinese companies despite heightened tensions between the world's two-largest economies.
It also shows that for Wall Street titans, flotations of Chinese firms represent a growing business opportunity.
Didi, Goldman and Morgan Stanley declined to comment. The sources declined to be named as the information is private.
Last year, Chinese companies raised $12bn in US listings, more than triple the fundraising amount in 2019, according to Refinitiv data.
Nine-year-old Didi was considering Hong Kong for its IPO last year as US-listed Chinese firms faced heightened scrutiny and more strict audit requirements from US regulators, while geopolitical tensions escalated between Beijing and Washington.
Didi later dropped that plan and has picked New York as the listing venue partly due to concerns that a Hong Kong IPO application could evoke more regulatory scrutiny over Didi's business practices.
Didi has opted for New York also because of a more predictable listing pace, the presence of comparable peers like Uber and Lyft and a deeper capital pool, said the people.
The move comes even as the Securities and Exchange Commission is pressing ahead with a plan that would kick foreign companies off American stock exchanges if they do not comply with US auditing standards.
Didi, which merged with then main rival Kuaidi in 2015 to create a smartphone-based transport services giant, counts as its core business a mobile app, where users can hail taxis, privately owned cars, car-pool options and even buses in some cities.
The company was valued at $56bn in a 2017 fundraising and its valuation exceeded $60bn a year later, sources have said.
