Benzinga | Jun 25, 2021 01:22PM EDT

China's Uber, Didi Chuxing Lowers IPO Valuation Target From $100B To $62B-$67B Following Chinese Internet Firm Crackdown

* China's Uber Technologies Inc (NYSE:UBER) equivalent, Didi Chuxing Technology Co, is on the cusp of pulling off its U.S. initial public offering following the growing Chinese antitrust crackdown on internet firms, Bloomberg reported.

* It was among 34 internet giants summoned by regulators in April to correct excesses. Didi warned investors regarding possible regulatory penalties.

* Didi is now chasing a valuation of $62 billion to $67 billion, the Wall Street Journal reported, which is below the previous $100 billion valuation.

* Although, the valuation may exceed $70 billion, including restricted stock units.

* Didi targets raising $3.9 billion from 288 million American depositary shares, at $13 - $14 per ADS.

* It will utilize the proceeds to invest in technology, expand beyond China and introduce new products.

* Didi plans to list its ADSs on the NYSE under the "DIDI" symbol.

* Traditional U.S.-listed IPOs have raised over $70 billion in 2021 already.

* Didi reported an FY20 revenue decline of 8.4% Y/Y to $21.63 billion due to the pandemic effect. It posted a net loss of $1.63 billion.

* The ride-hailing company posted revenue of $6.4 billion during the March quarter and $837 million in profit. China accounted for 90% of the revenue.

* Alibaba Group Holding Ltd (NYSE:BABA) alumnus founder Cheng Wei owns 7% of its shares and controls 15.4% of its voting power before the IPO.

* Didi won its price war with Uber in 2016 after Uber merged its China unit with Didi for a stake in Didi.

* Influential backers include SoftBank Group Corp (OTC: SFTBY) (OTC: SFTBF), Tencent Holdings Ltd (OTC: TCEHY), and Uber.