Didi Chuxing, the "Uber of China," Is Going Public: Buy or Sell?
The dominant ride-hailing service in China, Didi Chuxing, recently filed paperwork to go public on U.S. exchanges. It filed an F-1 to list American Depository Shares either on the NYSE (a subsidiary of Intercontinental Exchange) or the Nasdaq, likely some time next month.
Uber (NYSE: UBER) and Lyft have both had somewhat lackluster results since going public, with Uber roughly flat and Lyft down about 25% since their respective IPOs (initial public offerings). Of course, they both had to endure COVID-19 during that time.
Didi also saw a slowdown in results last year, but traffic has been rebounding quickly as China recovers from COVID, so Didi is looking to raise money on optimism over reopening. There are a few distinguishing characteristics that could make Didi a more compelling investment than either Uber or Lyft, but there are also some added risks. Does the opportunity outweigh the potential pitfalls?
Source Fool.com
