DiDi Global Faces U.S. SEC Probe Over IPO

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The Didi ride-hailing app on a smartphone.

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Yan Cong/Bloomberg

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Less than a year after DiDi Global launched a much-anticipated $4 billion initial public offering, the Chinese ride-hailing company is now facing a Securities and Exchange Commission investigation into that offering.

DiDi (ticker: DIDI) disclosed in a regulatory form Tuesday that the SEC had contacted the company and made inquiries about the IPO, according to an annual report filed with US regulators. DiDi is cooperating with the probe, “subject to strict compliance with applicable [People’s Republic of China] laws and regulations.”

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The company added in the filing that it couldn’t predict the “timing, outcome or consequences of such an investigation.”

Executives for DiDi did not immediately return messages for comment.

“The SEC does not comment on the existence or nonexistence of a possible investigation,” an agency said in email to Barron’s,

DiDi’s US-listed American depositary receipts have plunged about 62% year-to-date. Shares ended Tuesday at $2.

In June 2021, DiDi’s ADRs began trading on the New York Stock Exchange after the car-sharing behemoth raised $4 billion. The DiDi IPO was one of the biggest offerings of 2021.

Soon after the DiDi IPO, Chinese authorities announced they had launched a probe into the Beijing company for allegedly violating the country’s data privacy and national security laws. Chinese government agencies raided the company’s offices for a cybersecurity review a few weeks later. In December, DiDi said it planned to delist its ADRs from the NYSE, and list in Hong Kong. It plans to hold an extraordinary shareholders meeting on May 23 to vote on the delisting.

Write to Luisa Beltran at [email protected]

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Credit: www.marketwatch.com /

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