China's Didi eyes $100 bln New York IPO

China’s Didi Chuxing is leaning towards New York over Hong Kong for its blockbuster IPO.

That’s what two sources told Reuters, adding that the ride-hailing firm is aiming for a valuation of at least $100 billion.

They said Didi's preference for New York is over concerns a Hong Kong IPO would involve tighter scrutiny of its business practices.

That includes the use of unlicensed vehicles and part-time drivers.

Didi has experience of such issues.

It was fined multiple times in 2019 by authorities in Shanghai for using unlicensed vehicles.

There are other advantages Didi sees in a New York IPO, according to the sources.

A more predictable pace for the listing is one, while the prospect of tapping into a deeper pool of capital is another.

Hong Kong isn't completely out of the picture yet, though.

Another source close to Didi said the company might do a second offering in Hong Kong if its U.S. IPO goes ahead.

Didi is Beijing-based, and backed by tech investment giants SoftBank, Tencent and Alibaba.

The firm said it does not yet have a definitive plan about its listing or a timeline.