Chinese ride-hailing service Didi Chuxing is moving toward a 2018 initial public offering in the United States.
Didi, valued at US$25 billion, would be the most high-profile Chinese listing in the US since Alibaba Group Holding Ltd. launched an IPO two years ago, the Wall Street Journal reports, citing an unnamed source.
The company, Uber Technology’s main rival in China, has received a US$1 billion investment from Apple Inc.
Didi has ruled out a stock market flotation in China, the source said.
There are nearly 800 companies waiting to get regulatory approval for an IPO in China, making it hard to predict when a listing might happen.
A Didi spokeswoman in Beijing said the company has no IPO plan.
Didi, which dominates the ride-sharing market in China, was formerly known as Didi Kuaidi. It was formed last year from the merger of two companies backed separately by e-commerce giant Alibaba and social network firm Tencent Holdings Ltd.
Didi is seeking US$3 billion from investors in its latest funding round, which includes an investment of US$1 billion from Apple.
It had originally planned to raise US$2 billion but increased its target after Apple’s investment.
Didi and Uber have been spending heavily to subsidize rides and gain market share in China.
Didi completes more than 11 million rides a day, according to the company. Apple’s Chief Executive Tim Cook said the investment in Didi would help the U.S. firm better understand the critical Chinese market.
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