DiDi Faces Double Whammy Of US, China Investigations
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- The U.S. SEC is probing DiDi Global Inc’s DIDI botched U.S. IPO, the Financial Times reports.
- DiDi’s annual report disclosed that “the SEC contacted us and made inquiries in relation to the offering.”
- DiDi President Jean Liu also made her posts on the Chinese social media platform Weibo Corporation WB invisible to her 10 million followers over the weekend.
- Also Read: Why DiDi Global Shares Are Plunging Today
- The media targeted Liu for her perceived role in pushing the U.S. IPO. The attacks included her father, Liu Chuanzhi, founder of Lenovo Group Ltd LNVGY, a prominent figure in Chinese private enterprise.
- The Uber Technologies, Inc UBER counterpart has been battling Beijing’s national security probe since June 2021, just two days after its $4.4 billion IPO.
- DiDi’s revenues declined by 12.7% in the fourth quarter and the stock lost over 85% since its IPO, cutting the value of the stake of Softbank Group Corp’s SFTBY SFTBF Vision Fund, its largest shareholder, by ~$10 billion.
- China launched an investigation into DiDi, forcing the domestic app stores to remove all of DiDi’s core services, sending its share price plunging and constraining its ability to sign-up new users.
- DiDi looked to abandon its U.S. listing following the launch of Beijing’s investigation and relist in Hong Kong.
- Price Action: DIDI shares are down by 5.97% at $1.89 premarket on the last check Wednesday.
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