Is There Any Hope Left for DiDi Global's IPO?
For China-based ride-sharing service DiDi Global (NYSE: DIDI), June 30 was the peak of its public debt. At the height of its first day of trading, the company had a market cap of $80 billion. However, the shares' time at that level was extremely short-lived as its market cap has fallen below $60 billion since then.
The stock plunged after China's ruling Communist Party (CCP) suspended downloads of DiDi's namesake app from smartphone app stores in the country, citing cybersecurity risks regarding sensitive consumer data. The ban is likely temporary as more than 377 million of its existing annual users and 13 million drivers are still allowed to use the app. But even as shares have fallen below their IPO price, investors should proceed cautiously before buying the dip.
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Source Fool.com
