Why Is Everyone Talking About DiDi Global Stock?
DiDi Global (NYSE: DIDI), the top ride-sharing company in China, raised $4.4 billion in its upsized initial public offering (IPO) on June 30. It sold 317 million shares at $14 each, up from its original target of 288 million shares.
Yet Didi's stock barely closed above its IPO price on the first day, then plummeted over the following week following several stunning developments. Let's see what happened to DiDi, why everyone is talking about its broken IPO, and what its failure could mean for other Chinese IPOs.
On July 2, the Cyberspace Administration of China (CAC) suspended all new user registrations for DiDi's app within China -- where it generated about 98% of its revenue last year -- as part of a "cybersecurity review." On July 4, DiDi admitted the CAC had ordered the removal of its app from all of China's mobile app stores, due to a "problem of collecting personal information in violation of relevant PRC laws and regulations."
Source Fool.com
