(Yicai Global) Feb. 20 -- Dida Chuxing, China's largest carpooling service provider, has filed with the Hong Kong Stock Exchange for an initial public offering for the third time after compliance issues.
Dida, which has a bigger market share than Didi Chuxing on ride-hailing beyond taxi operators, would use the proceeds of the equity financing on enhancing its technological capabilities and upgrading its security mechanisms, according to the Beijing-based firm's prospectus filed today. The document did not disclose the target sum.
The sharing economy company would also pour money into expanding its user base, strengthening its marketing and promotion plans, as well as seeking partnerships and investment opportunities in the Chinese market. China International Capital, Haitong International, and Nomura Securities are Dida's IPO sponsors.
Dida failed to gain approvals for its previous two IPO applications filed in October 2020 and April 2021 in time.
Compliance remains the biggest challenge for Dida's listing dreams. According to the latest prospectus, the ride-sharing platform has received nearly 60 fines, and even though 36 of them have been withdrawn, the remainder tally CNY550,000 (USD80,205).
Still, the company has managed to remain profitable due to its asset-light operating model. In the first three quarters of 2022, Dida earned CNY65.4 million (USD9.5 million) in net profit, based on non-international financial reporting standards. For the full year of 2021, the figure was CNY238 million (USD34.7 million).
Dida is highly dependent on its ride-sharing business as it accounted for 91 percent of its revenue of CNY428.3 million (USD62.4 million) in the first three quarters of last year, the latest prospectus shows.
Editor: Emmi Laine, Xiao Yi