DIDI Chuxing is raising US$1.5 billion in debt financing from banks as the Chinese ride-hailing giant seeks to expand its firepower ahead of a potential U.S. initial public offering (IPO), according to people familiar with the matter.

Didi, backed by SoftBank Group Corp., has signed a revolving loan facility with JPMorgan Chase & Co., Morgan Stanley, Goldman Sachs Group Inc., HSBC Holdings Plc, Barclays Plc and Citigroup Inc., the people said.

A debt deal would serve as a stepping stone as Didi continues to evaluate a potential listing that could value the firm at about US$100 billion, the people said.

After raising a loan, Didi would follow the footsteps of other sharing economy companies in seeking a listing. The firm has mandated Goldman Sachs and Morgan Stanley to lead its blockbuster IPO and plans to file confidentially for the New York float this month, the sources said.

Didi, backed by Asian technology investment giants SoftBank, Alibaba and Tencent, is looking to list as soon as July.

It is eyeing a valuation of at least US$100 billion via the initial public offering, Reuters reported last month. At that valuation, Didi could raise about US$10 billion if it sells 10 percent of its shares, making it the biggest Chinese IPO in the United States since Alibaba’s US$25 billion float in 2014.

(SD-Agencies)