Didi has fallen a stunning 52% since its US IPO as China’s crackdown pummels the ride-hail giant

FILE PHOTO: The logo of Didi Chuxing is seen at a Didi station in Beijing, China January 2, 2019. REUTERS/Jason Lee
FILE PHOTO: The logo of Didi Chuxing is seen at a Didi station in Beijing

  • Didi is vying for China’s worst US IPO this year as its stock has lost more than half its value.
  • Not long ago, Didi was eyeing a $70 billion valuation. Less than a month from its debut, it is now worth less than $40 billion.
  • Didi has been spared the title of worst IPO this year by RLX Technology, a vaping company that has fallen 78%.
  • See more stories on Insider’s business page.

Didi is vying for China’s worst US IPO this year as the besieged ride hailing company’s stock has lost more than half its value.

Compared to the market open price on the day of its IPO, Didi has crashed as much as 52.1% on Friday. The company’s IPO listing price was $14, but the stock opened at $16.65 on its first day of trading. It now sits around $8, having fallen 31% this week alone.

Not long ago, Didi was eyeing a $70 billion valuation. Less than a month from its debut, it is now worth less than $40 billion.

That was the second-worst US listing for a Chinese company so far this year, of which there have been 37, according to Bloomberg. Didi edged out Full Truck Alliance, the so-called Uber for trucks that went public a week before Didi, which has lost 50.5% since its market open.

Both companies have been casualties of China’s rapidly enveloping cybersecurity probe. They have been barred from registering new users as the cyber ministry digs into alleged data-privacy risks for Chinese users.

Still, Didi has been spared the title of worst IPO this year by RLX Technology, a vaping company that has been buffeted by planned regulations to rein in China’s exploding e-cigarette usage. RLX has collapsed nearly 78% and is trading at less than $5 after debuting at $22 in February and peaking at $30.

Didi was trading at $8.04 as of 1:54 p.m. ET, down 21.2% so far on Friday.

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Didi’s US shares plunge 25% after China cracks down on ride-hailing app, just days after $68 billion IPO

Didi Chuxing China ride-hailing app
Didi is China’s biggest ride-hailing app.

Chinese ride-hailing app Didi dropped as much as 25% on the US stock market on Tuesday after China cracked down on the company, only days after its blockbuster initial public offering in New York.

Didi’s US-listed shares were last down 21.98% by 9.50 a.m. ET, to $12.10. US stock markets reopened on Tuesday after Monday’s 4th of July holiday.

Chinese authorities on Sunday ordered app stores to remove Didi Chuxing, the country’s biggest ride-hailing company, from their platforms. The Cyberspace Administration of China cited serious violations in the collection and use of personal data.

The crackdown came less than a week after Didi’s shares started trading on the New York Stock Exchange in one of the biggest IPOs of the last 10 years. Didi hit the market on Wednesday, with shares closing at $14.14, giving the app a market capitalization of $68 billion.

The company said China’s move to lock out new users may have an adverse impact on its revenue in its home market.

Uber, which is the second-biggest US holder of Didi stock, fell 1.82% when markets opened.

Read more: POWER PLAYERS: These 9 Uber executives are fighting the company’s increasingly messy gig-economy policy battles

Shares of Full Truck Alliance and Kanzhun, two Chinese tech companies who also recently listed in the US, dropped 19.95% and 9.38% respectively. The declines came after China expanded its clampdown to put new restrictions on the two companies on Monday.

“China is cracking down on big tech, but the decision to remove [Didi’s] app from domestic platforms appears to be timed for maximum impact and embarrassment,” said Neil Wilson, chief market analyst at trading platform Markets.com.

“China’s Communist Party is bristling at the number of Chinese companies listing in the US this year, but there is a genuine concern at the heart of this – regulators are not impressed at the way Didi and other Chinese tech companies handle data.”

Axel Springer, Insider Inc.’s parent company, is an investor in Uber.

Read the original article on Business Insider

Didi plunges 30% in premarket trading after China cracks down on ride-hailing app, days after $68 billion US IPO

FILE PHOTO: The company logo of ride hailing company Didi Chuxing is seen on a car door at the IEEV New Energy Vehicles Exhibition in Beijing, China October 18, 2018.  REUTERS/Thomas Peter/File Photo
Didi Chuxing is China’s biggest ride-hailing app.

  • Didi shares plunged as much as 30% in premarket trading Tuesday after China cracked down on its app.
  • Didi Chuxing listed on the New York Stock Exchange on Wednesday in a $68 billion IPO.
  • Chinese authorities are taking a tough line with the ride-hailing app maker and other tech companies.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Chinese ride-hailing app maker Didi plunged as much as 30% in premarket trading on the US stock market on Tuesday, after China cracked down on the company only days after its blockbuster US initial public offering.

Didi’s American depository receipts then pared some of their losses to stand 20.99% lower at $12.27 as of 06.15 a.m. ET. US equity markets will reopen on Tuesday after Monday’s 4th of July holiday.

Chinese authorities on Sunday ordered app stores to remove apps from Didi Chuxing, the country’s biggest ride-hailing company, from their platforms. The Cyberspace Administration of China cited serious violations in the collection and use of personal data.

The crackdown came less than a week after Didi’s shares started trading on the New York Stock Exchange in one of the biggest IPOs of the last 10 years. Didi hit the market on Wednesday, with shares closing at $14.14, giving the app a market capitalization of $68 billion.

Uber, which is the second-biggest US holder of Didi stock, fell 1.37% in premarket trading.

Read more: POWER PLAYERS: These 9 Uber executives are fighting the company’s increasingly messy gig-economy policy battles

Shares of Full Truck Alliance and Kanzhun, two Chinese tech companies who also recently listed in the US, dropped 16.04% and 10.49% respectively in premarket trading. The declines came after China expanded its clampdown to put new restrictions on the two companies on Monday.

“China is cracking down on big tech, but the decision to remove [Didi’s] app from domestic platforms appears to be timed for maximum impact and embarrassment,” said Neil Wilson, chief market analyst at trading platform Markets.com.

“China’s Communist Party is bristling at the number of Chinese companies listing in the US this year, but there is a genuine concern at the heart of this – regulators are not impressed at the way Didi and other Chinese tech companies handle data.”

Axel Springer, Insider Inc.’s parent company, is an investor in Uber.

Read the original article on Business Insider