Ride-hailing company in talks with regulator after proceeding with a US initial public offering last year
Senior Chinese officials have pushed back on a set of proposed punishments for Didi Global submitted by the nation’s cybersecurity regulator, leaving the future of the troubled ride-hailing giant in limbo, say informed sources.
That is why Didi suspended plans for a Hong Kong listing, and it is uncertain when that dispute could be resolved, said the sources. Some investors could be forced to sell because their mandates do not let them hold unlisted shares. Japan’s SoftBank, which can hold unlisted stock and ploughed more than $12bn into the company, has seen its 20% stake fall from a peak of about $16bn to less than $2bn.
It is unclear what measures the CAC recommended. The ride-hailing giant has explored several alternatives including hiving off data to a third-party Chinese firm and selling a stake to state-backed companies, Bloomberg News has reported. The China Securities Regulatory Commission said in a statement after last week’s announcement that Didi made the decision to delist based on the market and its own situation.
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