Chinese ride-hailing giant Didi's market value reached billion dollars despite being delisted by NYSE.
Jian Lu from Chinese ride-sharing giant Didi Mobility demonstrates the Didi app on his smartphone in Melbourne on June 25, 2018. - Chinese ride-sharing giant Didi has intensified its drive for global business, launching in Melbourne on June 25 as it joins rivals Uber, Taxify and Ola in Australia's taxi market.
Financial tech experts said companies delisted from the U.S. Big Board usually lose investors.
However, what's happening to Didi Global Inc. is the opposite, as the Chinese ride-sharing company boasted a market valuation of $14 billion.
This was announced by the vehicle-for-hire company on Tuesday, June 13.
Chinese Ride-Hailing Giant Didi's Valuation Spikes
According to Yahoo Finance's latest report, the billion-dollar market valuation of Didi is larger than other companies, whose shares are mainly quoted over the counter in the United States.
This photo taken on September 4, 2018 shows a logo of Didi Chuxing displayed on a building in Hangzhou in China's eastern Zhejiang province. - Chinese ride-hailing giant Didi Chuxing said on September 4 it would halt most late-night ride services for a week as it tries to reassure the public following the rape and murder of a passenger.
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This just shows that even though Didi Global Inc. is no longer included in the New York Stock Exchange listing, its stocks still attract seasoned institutional investors.
Here are the investors that are still putting their money into Didi's shares:
- Davis Selected Advisers' New York Venture Fund ($6.1 billion)
- Macquarie Group's Delaware Emerging Markets Fund ($5 billion)
- France's Carmignac (unknown)
Experts said it's uncommon to see the mentioned investors trusting companies on the OTC markets.
It is believed that Didi Global Inc. was able to get the trust of these investors since the Chinese firm promised that it would list its business in Hong Kong.
"Many people have bought or held on to Didi expecting that it will relist in Hong Kong at some future date," explained Rayliant Global Advisors Chief Investment Officer Jason Hsu.
He added that the market valuation of Didi is too big and successful, considering it is now an OTC company.
Didi Expands Its Service
Didi Global Inc. (formerly known as Didi Chuxing) is conducting drastic efforts to improve its business further.
PanDaily reported that the Chinese ride-sharing company is expanding to more cities in China, such as Beijing, Hangzhou, and Chengdu.
Specifically, the Chinese company introduced its newest express delivery service, the Didi Express.
Didi Express was developed after customers asked the Chinese company to offer faster delivery services for small items; cakes, car parts, flowers, etc.
You can visit this link to learn more about the expansion of Didi Global Inc.
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