China's Didi Chuxing picks Goldman Sachs, Morgan Stanley to lead its IPO

China's top ride-hailing firm Didi Chuxing has mandated Goldman Sachs and Morgan Stanley to lead its blockbuster initial public offering (IPO) and plans to file confidentially for the New York float this month.

Didi Chuxing, backed by Asian technology investment giants SoftBank Group Corp., Alibaba Group Holding Ltd. and Tencent Holdings Ltd., is looking to list as soon as July.

It is eyeing a valuation of at least $100 billion via the IPO, Reuters reported last month. At that valuation, it could raise about $10 billion if it sells 10% of its shares, making it the biggest Chinese IPO in the United States since Alibaba. The company was valued at $56 billion in a 2017 fundraising and its valuation exceeded $60 billion a year later

Nine-year-old Didi Chuxing was considering Hong Kong for its IPO last year as US-listed Chinese companies faced heightened scrutiny and more strict audit requirements from US regulators, while geopolitical tensions escalated between Beijing and Washington. Didi later dropped that plan and has picked New York as the listing venue partly due to concerns that a Hong Kong IPO application could evoke more regulatory scrutiny over Didi's business practices.

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