Didi Global Inc.âs stock increased slightly on the first day of trading after its IPO, with investors weighing the prospects of the Beijing-based ride-sharing company as it leaped into a hot market for initial public offerings.Didâs American depositary shares opened trading at $16.65 on Wednesday afternoon, 19% over 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 defied the trend of poor performance that has plagued a few other Chinese companiesâ 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 in the deal.Didl raised roughly $4.4 billion in its initial public offering on Tuesday after pricing shares at $14 apiece, making it the largest IPO haul for a Chinese company since Alibaba Group holding Ltd. listed shares in 2014, according to Dealogic. Some people around Didâs deal had originally floated the possibility of raising roughly $5 billion to $10 billion, according to a person familiar with the matter, but scaled back due to recent poor performance by Chinese IPOs and the high volume of US listed IPOs marketing shares to investors right now.
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