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How to invest in the Didi Chuxing IPO from South Africa

Didi Chuxing is set to go public, here's what you need to know if you're looking to buy in.

Hugely popular Chinese ride-hailing platform Didi Chuxing is set to list on the stock exchange in New York as soon as July this year. That means you’ll be able to buy Didi shares through a broker that offers US-listed stock.

What we know about the Didi Chuxing IPO

Beijing-headquartered Didi Chuxing is considering a multibillion-dollar IPO. Initial reports said the company was set to go live on the Hong Kong Stock Exchange, but recent news suggests the ride-hailing platform may be considering a New York premiere, says Reuters.

In further support of a potential US IPO is the debt deal Didi Chuxing recently entered into with JPMorgan Chase, Morgan Stanley and Goldman Sachs, among others. The deal will help the ride-hailing platform to raise $1.5 billion ahead of its listing, reports Bloomberg.

Didi Chuxing is among the most popular ride-hailing platforms in China, backed by the likes of Alibaba, Softbank and Tencent. The IPO is expected to launch in the first half of 2021, but no official date has been confirmed. In 2017, the company was worth $56 billion and it’s tentatively targeting a $100 billion valuation for its IPO launch.

How to buy shares in Didi Chuxing when it goes public

Once Didi Chuxing goes public, you’ll need a brokerage account with access to the US stock market to invest. Consider opening a brokerage account today so you’re ready as soon as the stock hits the market.

  1. Compare share trading platforms. If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  3. Search for Didi Chuxing. Find the stock by name or ticker symbol. Research its history to confirm it’s a solid investment against your financial goals.
  4. Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Didi Chuxing reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy a fractional share of Didi Chuxing, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Didi Chuxing. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

Didi Chuxing’s balance sheet

Didi Chuxing was founded in 2012 and is headquartered in Beijing, China. It operates as a mobile transportation platform, offering a variety of services that include ride-hailing, ride-sharing, bike-sharing and more. It serves over 10 billion passengers annually across China, Japan, Australia, Russia and Latin America.

In 2016, Didi acquired Uber China, partnered with TripAdvisor and broke records by offering over 11 million private-car rides and 14 million orders in a single day.

While we’ve yet to see a public statement from the company on the matter, sources suggest Didi generated a healthy profit in Q2 2020. As more information is released ahead of its IPO, investors will have the opportunity to learn more about the company’s balance sheet.

How are similar companies performing?

While no guarantee of performance, here’s how some of Didi Chuxing’s competitors have fared:

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Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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