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COMING UP:Share Opener Variant 3

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Transcript

00:00:02
>> Chinese ride share giant Didi is set to spin off its car services unit in a deal that could be worth $1.5 billion. A number of Reuters sources said the deal would happen ahead of Didi's expected IPO later this year. Right now, the company's worth $56 billion. A listing by a company worth that much would be one of the biggest in recent years.
00:00:23
The company bought out Uber's local operation in 2016 and cemented its status as China's top ride sharing service. Didi has never confirmed its IPO plans but spinning off a side unit that only just launched in April may signal they're getting ready for one. It's among a number of other Chinese tech firms looking to raise cash.
00:00:42
Many have been eyeing Hong Kong Stock Exchange to do it. Recent reforms in the Asian financial hub have encouraged tech companies to go public, but a recent showing wasn't entirely rosy. In June, Chinese device maker Xiaomi launched a public offering in Hong Kong. Listing at almost half the value, insiders had tipped at the start of the year.
00:01:03
It may be a matter of timing. Analysts say Asian investors are worried about the escalating trade conflict between China and the US. While a Didi IPO's just a theory right now, sources say the company's already tapped buyers for the sell off. Including long time investor, SoftBank Group of Japan.
00:01:20
SoftBank's Vision Fund is the world's largest private equity fund at $93 billion last year.