Tag Archives: NAMER

China’s Didi raises $4.4 bln in upsized U.S. IPO -sources

  • Didi sold 317 mln ADS, more than planned 288 mln -sources
  • Sells ADS at $14 a piece – sources
  • Would give Didi $73 bln valuation on fully diluted basis

June 29 (Reuters) – Chinese ride hailing company Didi Global Inc (DIDI.N) raised $4.4 billion in its U.S IPO on Tuesday, pricing it at the top of its indicated range and increasing the number of shares sold, according to two sources familiar with the matter.

Didi sold 317 million American Depository Shares (ADS), versus the planned 288 million, at $14 apiece, the people said on condition of anonymity ahead of an official announcement.

This would give Didi a valuation of about $73 billion on a fully diluted basis. On a non-diluted basis, it will be worth $67.5 billion. The company is expected to debut on the New York Stock Exchange on June 30.

The increase in deal size came after the Didi investor order book was oversubscribed multiple times, one of the sources said.

Investors have been told to expect their orders to be scaled back once allocations are completed on Wednesday, according to a separate source with direct knowledge of the matter.

Didi did not respond to a request for comment.

The listing, which will be the biggest U.S. share sale by a Chinese company since Alibaba raised $25 billion in 2014, comes amid record IPO activity this year as companies rush to capture the lucrative valuations seen in the U.S. stock market.

Didi’s IPO is more conservative than its initial aim for a valuation of up to $100 billion, Reuters has previously reported. The size of the deal was cut during briefings with investors ahead of the IPO’s launch. read more

This suggests increasing investor worries about China’s potential anti-trust related crackdown and a more volatile IPO environment globally in 2021, said Douglas Kim, a London-based independent analyst, who writes on Smartkarma.

A Didi logo is seen at the headquarters of Didi Chuxing in Beijing, China November 20, 2020. REUTERS/Florence Lo/File Photo

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“But it seems like many investors like this deal, the volatile IPO environment helped to lower IPO price and valuation looks attractive,” Kim told Reuters.

Didi’s IPO was covered early on the first day of the book-build last week and the investor books were closed on Monday, a day ahead of schedule. read more .

An over-allotment option, or greenshoe, exists where another 43.2 million shares can be sold to increase the deal size.

DIDI HISTORY

Didi was co-founded in 2012 by former Alibaba employee Will Wei Cheng, who currently serves as the chief executive officer. Cheng was joined by Jean Qing Liu, a former Goldman Sachs banker and the current president of the ride-sharing company.

The company counts SoftBank (9984.T), Uber Technologies Inc (UBER.N) and Tencent (0700.HK) as its main backers.

Didi is also known for successfully pushing Uber out of the Chinese market after the U.S. company lost a price war and ended up selling its China operations to Didi for a stake. Liu Zhen, the head of Uber China at the time, is Didi’s Liu’s cousin.

Like most ride-hailing companies, Didi had historically been unprofitable, until it reported a profit of $30 million in the first quarter of this year.

The company reported a loss of $1.6 billion last year and an 8% drop in revenue to $21.63 billion, according to a regulatory filing, as business slid during the pandemic.

Its shares are due to start trading under the “DIDI” symbol.

Reporting by Echo Wang in New York and Anirban Sen in Bengaluru and Scott Murdoch in Hong Kong; Editing by Greg Roumeliotis, Bill Berkrot and Himani Sarkar

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Tesla shares drop after muted Q1 results as a global chip crunch persists

Shares of Tesla Inc (TSLA.O) fell more than 4% on Tuesday as its first-quarter earnings results failed to alleviate investor concerns about its lofty evaluation, as well as a prolonged global chip shortage and rising competition.

The electric car maker’s quarterly revenue made it barely past estimates, relying mostly on sales of environmental credits sold to other automakers and the liquidation of 10% of its $1.5 billion bitcoin investment.

“Tesla’s performance was OK but it wasn’t a Elon Musk slam dunk…I don’t think people are into Tesla because of bitcoin,” said Eric Schiffer, CEO of private equity Patriarch Organization, which has an underweight stance on Tesla.

“Investors are rejecting the stock short term,” he said, saying Tesla’s performance has fallen short of catching up its “astronomical valuation.”

Musk, the company’s CEO, did earn options payouts worth $11 billion based on targets reached by the company.

Shares of the automaker closed down 4.5% at $704.74, down more than 20% from its intraday high reached in January. They had surged more than 700% last year, making Tesla the world’s most valuable automaker.

Tesla posted record deliveries in the first quarter despite a global chip shortage that has slammed auto sector rivals. But analysts said a prolonged shortage of chips and batteries could threaten to dampen its growth prospect.

“A global shortage of computer chips is expected to limit production from all manufacturers in the immediate future, and Tesla won’t be exempt,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.

“Given the ongoing importance of its production ramp up, it may even be more heavily impacted.”

Regarding supply chain instability, Tesla Chief Financial Officer Zachary Kirkhorn said on Monday, “We believe that this landscape is improving, but it does remain difficult, and it’s an evolving situation.”

Roth Capital Partners said it holds a neutral rating on Tesla, saying that Tesla’s large premium “seems to rest on the specious assumption that the hundreds of EVs slated for launch by ’25 will all be flops.”

“Tesla does not operate in a vacuum,” it said in a report.

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Mars helicopter flight test promises Wright Brothers moment for NASA

The planet Mars is shown in this NASA Hubble Space Telescope view taken May 12, 2016. NASA/Handout via Reuters

NASA hopes to score a 21st-century Wright Brothers moment on Monday as it attempts to send a miniature helicopter buzzing over the surface of Mars in what would be the first powered, controlled flight of an aircraft on another planet.

Landmark achievements in science and technology can seem humble by conventional measurements. The Wright Brothers’ first controlled flight in the world of a motor-driven airplane, near Kitty Hawk, North Carolina, in 1903 covered just 120 feet (37 meters) in 12 seconds.

A modest debut is likewise in store for NASA’s twin-rotor, solar-powered helicopter Ingenuity.

If all goes to plan, the 4-pound (1.8-kg) whirligig will slowly ascend straight up to an altitude of 10 feet (3 meters) above the Martian surface, hover in place for 30 seconds, then rotate before descending to a gentle landing on all four legs.

While the mere metrics may seem less than ambitious, the “air field” for the interplanetary test flight is 173 million miles from Earth, on the floor of a vast Martian basin called Jezero Crater. Success hinges on Ingenuity executing the pre-programmed flight instructions using an autonomous pilot and navigation system.

“The moment our team has been waiting for is almost here,” Ingenuity project manager MiMi Aung said at a recent briefing at NASA’s Jet Propulsion Laboratory (JPL) near Los Angeles.

NASA itself is likening the experiment to the Wright Brothers’ feat 117 years ago, paying tribute to that modest but monumental first flight by having affixed a tiny swath of wing fabric from the original Wright flyer under Ingenuity’s solar panel.

The robot rotorcraft was carried to the red planet strapped to the belly of NASA’s Mars rover Perseverance, a mobile astrobiology lab that touched down on Feb. 18 in Jezero Crater after a nearly seven-month journey through space.

Although Ingenuity’s flight test is set to begin around 3:30 a.m. Eastern Time on Monday (0730 GMT Monday), data confirming its outcome is not expected to reach JPL’s mission control until around 6:15 a.m. ET on Monday.

NASA also expects to receive images and video of the flight that mission engineers hope to capture using cameras mounted on the helicopter and the Perseverance rover, which will be parked 250 feet (76 meters) away from Ingenuity’s flight zone.

If the test succeeds, Ingenuity will undertake several additional, lengthier flights in the weeks ahead, though it will need to rest four to five days in between each to recharge its batteries. Prospects for future flights rest largely on a safe, four-point touchdown the first time.

“It doesn’t have a self-righting system, so if we do have a bad landing, that will be the end of the mission,” Aung said. An unexpectedly strong wind gust is one potential peril that could spoil the flight.

NASA hopes Ingenuity – a technology demonstration separate from Perseverance’s primary mission to search for traces of ancient microorganisms – paves the way for aerial surveillance of Mars and other destinations in the solar system, such as Venus or Saturn’s moon Titan.

While Mars possesses much less gravity to overcome than Earth, its atmosphere is just 1% as dense, presenting a special challenge for aerodynamic lift. To compensate, engineers equipped Ingenuity with rotor blades that are larger (4-feet-long) and spin more rapidly than would be needed on Earth for an aircraft of its size.

The design was successfully tested in vacuum chambers built at JPL to simulate Martian conditions, but it remains to be seen whether Ingenuity will fly on the red planet.

The small, lightweight aircraft already passed an early crucial test by demonstrating it could withstand punishing cold, with nighttime temperatures dropping as low as 130 degrees below zero Fahrenheit (minus 90 degrees Celsius), using solar power alone to recharge and keep internal components properly heated.

The planned flight was delayed for a week by a technical glitch during a test spin of the aircraft’s rotors on April 9. NASA said that issue has since been resolved.

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Modi appeals to keep Hindu festival symbolic as India’s COVID-19 infections surge

Indian Prime Minister Narendra Modi on Saturday appealed to devotees to keep a key Hindu festival symbolic, amid worries about the spread of COVID-19 infections as the country reported more than 200,000 new cases for a third straight day.

Criticism has mounted over the Indian government’s handling of the health crisis, as religious festivals and election rallies continue despite reports of shortages of hospital beds, oxygen cylinders and vaccination doses. read more

India reported 234,692 COVID-19 infections over the last 24 hours, taking the total number of cases to nearly 14.5 million, second only to the United States.

Deaths from the disease rose by 1,341 to 175,649.

After hundreds of thousands of ascetics and devout Hindus gathered for several days along the banks of the Ganges for a religious festival Kumbh Mela, Modi on Saturday called for restraint, saying on Twitter the festival should now be kept “symbolic”.

Responding to Modi’s appeal, one of the religious leaders Swami Avdheshanand urged devotees to not gather in large numbers. Devout Hindus believe bathing in the holy Ganges absolves people of sins, and during the Kumbh Mela, brings salvation from the cycle of life and death.

Those returning to Mumbai in western Maharashtra state from the Kumbh Mela will have quarantine in hotels, Mumbai’s mayor Kishori Pednekar said. Maharashtra accounts for quarter of India’s coronavirus cases and is the worst hit region.

Experts have warned about the spread of more contagious variants of the disease, especially during large-scale gatherings for religious festivals and political rallies.

On Saturday, Modi was scheduled to hold two rallies in eastern state of West Bengal where state polls are ongoing. In recent weeks, such rallies have attracted thousands of people, few of whom follow COVID-19 safety protocols.

“Stop spreader rallies,” the Times of India said in an editorial on Saturday, adding: “Business as usual is an unaffordable luxury until this virus is conclusively tamed.”

India’s daily COVID-19 vaccinations have slowed from their record high early this month and many state governments have requested more doses.

Federal Health Minister Harsh Vardhan assured states there were no shortages and 11.6 million doses would be made available in a week, adding that 125 million doses have already been administered.

Some state governments in India have raised concerns over hoarding and black marketing of anti-viral drug Remdesivir. read more

Nawab Malik, a minister from Maharashtra, accused Modi’s federal government on Twitter for restricting Remdesivir supplies to the state. A minister in Modi’s cabinet, Mansukh Mandaviya, denied the allegation, saying adequate supplies were being arranged.

After imposing one of the world’s strictest lockdowns for nearly three months last year, India’s government relaxed almost all curbs by the beginning of 2021, although many regions have now introduced localised restrictions.

“This is Narendra Modi’s biggest crisis yet. It is bigger than any security threat, external or internal, or even the economic attrition of 2020,” prominent editor and political commentator Shekhar Gupta wrote in a column on Saturday.

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