Kul Bhushan · · 1 min readDidi puts brakes on HK listing plans amid regulatory investigation
Didi Global has halted its plans for an IPO in Hong Kong, South China Morning Post reported, citing people with knowledge of the situation.
The sources added that Didi can’t go public until it has made sufficient “rectifications” in compliance with China’s cyberspace administration, which has been investigating the ride-hailing titan.
Didi announced that it was delisting from the New York Stock Exchange in December 2021 as regulators launched a cybersecurity probe. Amid with the scrutiny, the authorities directed the company to stop signing up new users and ordered the removal of as many as 25 Didi apps from local app stores.
Since then, it was rumored that Didi would explore relisting in Hong Kong.
The crackdown has also adversely affected Didi’s finances as it net loss in 2021 widened threefold to nearly US$7.7 billion. The company also had 80.7 million monthly active users by the end of last year, indicating a 20% drop from 2020.
See also: The leading Asian tech players eyeing an IPO in 2022 and beyond (Updated)
Editing by Samreen Ahmad and Eileen C. Ang
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