Didi Denies Going Private, Pre-Market Price Soars 50%

didi
(Source: Getty Images)

On the evening of July 29th, the Wall Street Journal reported that Didi, an online ride-hailing company, was considering privatization to appease the dissatisfaction of Chinese authorities. The report said that the company would also compensate investors for losses incurred by the company’s listing in the United States a month earlier. Didi later denied this report on its official Weibo channel. Prior to that time, the company’s pre-market share price spiked 50%.

Didi said that it is now actively and fully cooperating with the cyber security review.

On June 30th, Didi was officially listed on the New York Stock Exchange, with an issue price of US $14/ADS and an overall valuation of over US $67 billion. Since its listing, Didi’s share price has declined considerably, falling as low as $7.16 USD per share. Compared to its IPO, the share price has dropped by nearly 60%.

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Affected by the probe into Didi, many Chinese enterprises, including Hello Travel, LinkDoc, and Ximalaya, have canceled their plans to go public in the United States.