April 28, 2016 Update: It is being reported that Didi Chuxing has just completed another round of funding that now puts its valuation close to $50 billion dollars. The funding amount of $5.5 billion came from the likes of SoftBank and others and will help the company in its global expansion as well as other business ventures that the company is trying to get into. It will also help Didi Chuxing fight off Uber which is its biggest competitor around the world.
Ride sharing is now widely accepted around the world and one of the biggest companies is China’s Didi Chuxing. Having just bought out Uber’s China business, it is now thought to be valued at more than $50 billion. But just like all the other ride hailing companies that you have heard of, you can’t buy Didi Chuxing stock because the company is still private.
Didi Chuxing now dominates in China as estimates of its market share exceed 95%. It will be impossible for any other competitor to come in and compete now that Uber has effectively given up. But that doesn’t mean that there is any stock IPO on the horizon and it will be 2017 at the earliest and more likely 2018 before we see any talk of a Didi Chuxing initial public offering.
How To Buy Didi Chuxing Stock If It IPO’s In The United States
Sooner or later, there will be a Didi Chuxing IPO and the company has a choice to make. It can go public on the Chinese stock market or it can choose to list on one of the two American markets (Nasdaq, NYSE) like Alibaba did.
If Didi chooses to IPO on the Chinese exchange, it will be very hard for investors to buy its stock. But as of August 2016, it seems that Didi is favoring listing on a U.S exchange according to a Reuters article that sites an unnamed source. If this ends up being true, then any investor who uses a broker that allows them to buy stocks in America can buy shares on the date Didi Chuxing starts trading.
When Didi does eventually go public, you will need to have money in an online discount broker account and there are many to choose from that are reputable. E*Trade, Fidelity, Charles Schwab, Merrill Edge, and Scottrade are some of the better known brokers and they all charge anywhere from $6.95 to $9.99 per trade. But perhaps the best choice is TD Ameritrade that charges a trading fee of $6.95 and comes in rated #4 on Barrons 2016 list of brokers. Why pay more when you can get such a highly rated broker experience for less?
Apple Invested In Didi Chuxing Before The IPO But You Can’t
In mid May 2016 it was announced that Apple had invested $1 billion in the Chinese ride sharing service and it is thought that this was one of the reasons that pushed Uber to give up and sell their Chinese division. While Apple and other deep pocketed investors might be able to buy shares of Didi Chuxing before the IPO, regular investors like us cannot.
That means we will have to wait for Didi to announce that it has decided to go public and only after the IPO takes place will regular investors from around the world be able to buy Didi Chuxing stock. As mentioned earlier in this article, it will probably be 2018 before that happens.
As of right now, while the sharing economy has taken off around the world, no big name sharing company has gone public so we have no idea how such a company will do for investors. We are still waiting to buy Uber stock and to buy Lyft stock which are the biggest competitors to Didi Chuxing should they ever decide to expand internationally. Additionally, Airbnb stock (room sharing) can’t be bought either nor can you buy WeWork stock (office space sharing). Investors are extremely eager to purchase shares of all these “sharing” companies but it looks like it will be at least 2017 or later before any of them have an IPO.