On Monday, CNBC’s Jim Cramer secured an offer to Didi, an Uber-like Chinese company, whose shares will go public in the United States this week.
“I think the valuation would be reasonable,” said the “Mad Money” host. “If you want to speculate on a Chinese IPO, then you have my blessing to bet on Didi. I will try to get as many shares as possible.
Didi will be listed on the New York Stock Exchange on Wednesday with the ticker symbol DIDI. The company expects its share price to be between $13 and $14 per share. That would give the ride-hailing giant a valuation of more than $60 billion. The IPO could raise more than $4 billion for the company. This will make it one of the largest companies by 2021.
“There are antitrust concerns here. But as long as they remain on the good side of the Communist Party,” Cramer said. “I suspect they will have a lot of trouble with regulators.”
Antitrust concerns have been raised by reports that Chinese market regulators are investigating whether Didi unfairly intercepts smaller competitors. And are the pricing guidelines transparent enough? The investigation comes as the country scrutinizes other companies such as Alibaba and Tencent.
Didi reported revenue of $21.6 billion last year. The company also said it was profitable last quarter with revenue of $6.4 billion.
Didi is ranked #5 on this year’s CNBC Disruptor 50 list.