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.