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Thursday, March 23, 2023

DiDi (NYSE: DIDI) Mulling Going Private to Calm Chinese Authorities

DiDi Global Inc. (NYSE: DID) disclosed on Thursday that it is intending to go private to calm Chinese regulatory authorities. The firm is considering going private to compensate the losses of investors and Chinese authorities after the firm list on New York Stock Exchange. The recent crackdown in China has forced the firm to consider the decision of delisting.

It has been disclosed that after its $4.4 billion US listing on New York Stock Exchange, the Chinese authorities commenced the investigation process and asked the form to halt the registration of the new users. The Chinese authorities also warned DiDi that it will also remove the mobile app run by DiDi from the app store.

The news of the firm considering delisting sends the stock of the firm soaring. Shares of DiDi surged 33.48% as it gained +2.97 during the pre-market trading session of Thursday. At the time of writing on Thursday, the firm has recorded a trading volume of 12.57 million. Furthermore, The Wall Street Journal report disclosed that DIDI is discussing with important investors, regulators, and bankers regarding the issue of the probe after the listing on NYSE.

Additionally, the firm has requested its major underwriters to examine the viewpoints of investors regarding a privatization plan. The firm has also asked the investors about the pricing range that they would accept. Moreover, it has been revealed in the last week that Chinese regulators were pondering to impose severe penalties for the Didi, including pushing it to delist. Beijing is expected to enforce tougher restrictions on the ride-hailing firm.

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