Date
14 December 2018
Didi Chuxing, which holds more than 87 percent of the Chinese private ride-share market, is facing new challengers with several firms announcing plans to launch ride-hailing services. Photo: Reuters
Didi Chuxing, which holds more than 87 percent of the Chinese private ride-share market, is facing new challengers with several firms announcing plans to launch ride-hailing services. Photo: Reuters

Didi unit seeks to raise US$1.6 bln via asset-backed securities

A unit of Chinese ride-hailing firm Didi Chuxing has submitted an application to raise 10 billion yuan (US$1.6 billion) through an issuance of asset-backed securities, Reuters reports.

Didi, which said in December it had raised US$4 billion to support its overseas expansion, did not say how the funds would be used.

The funds will be raised by Dirun (Tianjin) Technology Co. Ltd., according to a filing published on the Shanghai Stock Exchange’s bond market website. Dirun’s sole shareholder is Didi Chuxing, local government records show.

The state-run Beijing News newspaper, which reported the proposed fundraising on Saturday, cited sources as saying Didi was also preparing to launch a meal delivery business in the eastern city of Wuxi on April 1.

Didi, which holds more than 87 percent of the Chinese private ride-share market, is facing new challengers with several firms including Tencent-backed (00700.HK) meal delivery company Meituan-Dianping announcing plans to launch ride-hailing services.

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