Reuters
- 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.