The management of the ride-hailing giant will have more than 50% of the voting rights.
According to the updated version of its prospectus, Didi is expected to issue a total of 288 million shares. The IPO price range will be set between USD 13 to USD 14, with the aim of raising about USD 4 billion.
The firm disclosed in the prospectus that 30% of the funds raised will be used to expand business in international markets outside China, 30% will be used to improve technical capabilities, including shared-ride services, electric vehicles and autonomous driving; meanwhile, about 20% will be put towards launching new products and expand existing product categories to continuously improve user experience. The remaining part may be used for working capital demand and potential strategic investment.
Cheng Wei, founder and CEO of Didi, Liu Qing, co-founder and President of Didi, and Zhu Jingshi, senior vice president of Didi, together hold 9.8% of the shares. According to the super-voting ratio of 1:10, the total voting rights of the three are 52%, regardless of the dilution of IPO.
Kentaro Matsui, a board member appointed by Softbank, is still on the list of directors disclosed this time, but according to the previous agreement, Softbank will withdraw from Didi's board of directors after its official listing. Zhiyi Chen, managing director of Boyu Capital, a financial investor, will also resign after the IPO.
It is reported that before the IPO, Softbank held 21.5%, Uber 12.8%, Tencent 6.8% and Didi founder Cheng Wei 7%.
Up to now, Didi has carried out business in more than 4000 cities in 16 countries including, providing online car-hailing, taxis, free riding, bike-sharing, motorcycle sharing, driving agency, car service, freight transportation, finance, autonomous driving and other services. Didi's listed company name has also been updated from Xiaoju kuaizhi to Didi global.
According to the prospectus, Didi's revenue results in 2018, 2019 and 2020 were CNY 135.3 billion, CNY 154.786 billion and CNY 141.736 billion respectively.