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Shares of Chinese ride hailing company Didi Global soared in pre-market trading on rumours that the company would be taken private. Photo: Reuters
BusinessCompanies

Didi shares pare gains after it denies delisting rumours

  • Didi surged as much as 49 per cent in pre-market trading after The Wall Street Journal reported it was considering going private to placate Chinese authorities
  • Didi denied the report, saying that it was ‘actively cooperating with cybersecurity reviews’
Didi Chuxing
Martin Choi
Martin Choi
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Didi Global shares gave back most of the 49 per cent jump in pre-market trading after the company denied a Wall Street Journal report that it was considering going private.

Didi closed up 11.2 per cent at US$9.86 on the New York Stock Exchange on Thursday after rising as much as 49 per cent to US$13.20 in pre-market trading.

The Journal reported on Thursday that the ride-hailing giant was considering going private to placate authorities in China and compensate investors for losses incurred since the company listed in the US in late June, citing people familiar with the matter.

However, Didi denied the report in a post on its official Weibo account, saying that it was “actively cooperating with cybersecurity reviews”.

The ride-hailing firm trades in New York as Didi Global, while operating in China as Didi Chuxing.

On July 16, a task force of seven Chinese ministries, including the Cyberspace Administration of China (CAC), the public security ministry and the national security ministry, conducted an on-site investigation of Didi Chuxing’s offices in the country’s first-ever cybersecurity review.
Didi raised US$4.4 billion with its initial public offering priced at the top of its marketed range at US$14 a share, the company said. The offering was oversubscribed by 10 times, according to Tencent News. The company said it had increased the number of shares sold by 10 per cent to 316.8 million because of strong demand.

Before Thursday’s unexpected surge, Didi’s shares had lost as much as 37 per cent in value from the IPO price after China’s internet regulator stopped it from registering new users, just two days after the ride-hailing giant completed the largest fundraising by a Chinese company in New York this year.

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