Didi Global shares fell as much as 25% in early US trading on Tuesday, July 6, in the first session since Chinese regulators ordered the company’s app to be taken down days after its US$4.4 billion listing on the New York Stock Exchange.
According to Reuters, the ride-hailing giant’s app was ordered to be removed from mobile app stores in China on Sunday by the Cyberspace Administration of China (CAC), which had announced that it was investigating Didi’s handling of customer data.
The CAC on Monday also announced cybersecurity investigations into other Chinese companies whose parents have listed in the United States, and those parents’ shares also slid.
The US market was closed on Monday following the July 4 holiday. Didi Global shares were last trading at about US$11.97 – a fall of more than US$17 billion in market capitalization from Friday – and well below their debut price of US$16.65 on June 30.
The Wall Street Journal reported on Tuesday that the company had been warned by regulators to delay the initial public offering (IPO) and examine its network security.
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