‘Get as many shares as you possibly can’
CNBC’s Jim Cramer on Monday advocated going public for Didi, the Uber-like Chinese company whose shares are set to go public in the US this week.
“I think the rating appears immediately appropriate,” said the Mad Money presenter. “If you want to speculate on a Chinese IPO, you have my blessings on Didi. I would try to get as many stocks as possible.”
Didi will be listed on the New York Stock Exchange on Wednesday under the ticker symbol DIDI. The company predicts its stock will range between $ 13-14 per share, which could earn the ridesharing giant a valuation of more than $ 60 billion. The IPO could gross the company more than $ 4 billion, which would make it one of the largest of 2021.
“There are some antitrust concerns here, but as long as you stay on the good side of the Communist Party,” said Cramer. “I doubt they’ll have much trouble with regulators.”
The antitrust concerns stem from a report that China’s market regulator is investigating whether Didi wrongly wiped out smaller competitors and whether its pricing practices are sufficiently transparent. The investigation comes after the country scrutinized other companies like Alibaba and Tencent.
Didi reported sales of $ 21.6 billion last year. The company also said it posted a profit of $ 6.4 billion in revenue for the last quarter.
Didi was ranked 5th on this year’s CNBC Disruptor 50 list.