US securities regulator probes Chinese giant Didi Global's $4.4 billion IPO
US Securities Exchange Commission (SEC) is investigating Chinese ride-hailing giant Didi Global Inc (NYSE: DIDI) over its $4.4 billion initial public offering on the New York Stock Exchange in June last year
• Didi shareholders will vote on May 23 on delisting NYSE ADRs
• China’s Uber said it is cooperating with SEC
US Securities Exchange Commission (SEC) is investigating Chinese ride-hailing giant Didi Global Inc (NYSE: DIDI) over its $4.4 billion initial public offering on the New York Stock Exchange in June last year.
Didi, in its annual filing on Monday, said that the company was cooperating with the US securities regulator’s probe and mentioned that it is “subject to strict compliance” with Chinese law.
“We cannot predict the timing, outcome, or consequences of such an investigation,” Didi added.
The company did not provide any other details about the nature of the investigation.
The overseas IPO of the Chinese giant came under scrutiny by Beijing regulators last summer over data privacy concerns.
Chinese authorities had urged the ride-hailing company to put its listing on hold while a cybersecurity review of its data practices was conducted.
Days after the company made a debut on the US exchange, China’s cyberspace watchdog ordered local app stores to remove as many as 25 mobile apps operated by Didi and told the company to stop registering new users, citing national security and the public interest.
In December, Didi announced that it would delist its American Depositary Shares (ADS) from the NYSE and pursue a listing in Hong Kong.
Didi plunged 44% in March after the company suspended preparations for its planned Hong Kong listing.
Shareholders of what is known as China’s Uber will vote on May 23 on its plans to delist ADRs from the US exchange.
Picture Credit: BBC
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