Didi Stock Rises on First Day, Though Rally Fades Into the Close


Didi Global Inc.’s stock rose slightly on the first day of trading after its IPO, with investors weighing the prospects of the Beijing-based ride-sharing company as it jumped into a hot market for initial public offerings.

Didi’s American depositary shares opened trading at $16.65 on Wednesday afternoon, 19% above their $14 IPO price. But the rally faded into the afternoon, and the stock closed up 1% at $14.14. The company ended the day with a market capitalization of roughly $68 billion.

Still, the gains bucked the trend of poor performance that has plagued several other Chinese companies’ IPOs in recent weeks, signaling that investors are willing to overlook some risks for the promise of high growth, and that Didi and its underwriters were wise in conservatively pricing the deal.

Didi raised about $4.4 billion in its initial public offering Tuesday after pricing shares at $14 apiece, making it the biggest…

Read more…