DiDi stock pares gains after denial of report it is considering going private

Business

MarketWatch 29 July, 2021 - 06:48am 33 views

Didi Considers Going Private as China's Tech Crackdown Hammers Investors | The Motley Fool

The Motley Fool 29 July, 2021 - 07:00pm

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.

For some high-profile public figures, escaping to a private life out of the spotlight would be a dream come true. The same applies to some public companies — on Thursday, it was revealed Chinese ride-hailing giant Didi is weighing whether to go private, less than two months after its IPO.

The move would satisfy Chinese regulators on a merciless crackdown against tech firms — as well as Didi investors, who have been hammered by losses since the firm failed to mention a government probe into its activities.

Last month, Didi raised $4.4 billion when it launched an IPO at $14 a share — the biggest stock sale by a Chinese company since Alibaba in 2014. But what the firm conveniently left off its investor prospectus was that weeks earlier, Chinese regulators told Didi to delay listing to allow for an investigation of its network security. Didi brazenly went ahead with its IPO anyway, initiating a nightmare stretch for the company:

Full Refund? Didi began to explore going private earlier this month, as China warned it is tightening rules on companies selling shares abroad. The firm could fund the move using proceeds from its IPO, potentially returning some or all of the share value that early investors watched evaporate.

The Worst-Performing Stock In The World: China's tech crackdown has been a nightmare for stocks beyond just Didi's. Formerly one of the country's trendiest investments, Tencent has fallen 23% in July, an annihilation of $170 billion in market value. That's the most shareholder wealth lost by one firm worldwide this month — in fact, 9 of July's top 10 biggest losers in shareholder value are Chinese companies.

Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Stock Advisor list price is $199 per year.

Stock Advisor launched in February of 2002. Returns as of 07/30/2021.

Market data powered by Xignite.

Didi Shares Rebound on Report Company May Go Private

Bloomberg 29 July, 2021 - 09:48am

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Americas+1 212 318 2000

EMEA+44 20 7330 7500

Asia Pacific+65 6212 1000

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Americas+1 212 318 2000

EMEA+44 20 7330 7500

Asia Pacific+65 6212 1000

Beginning of dialog window. Escape will cancel and close the window.

Business Stories