In the early morning of December 3, 2021, the Chinese ride-hailing company, DiDi Global Inc (NYSE:DIDI), made this surprise announcement.
Didi To Leave US Stock Market
Didi Chuxing has experienced a turbulent five-month post-IPO period. According to the company's announcement, it is planning to delist from the US market and go public again, in Hong Kong.
Since it experienced regulatory crackdowns and was delisted from app stores in China, Didi's stock price has slumped by 44.29% at USD 7.8 per share.
Law firms including Rosen, Labaton Sucharown and Schall gathered recently and initiated a class suit against Didi. They believe the IPO of Didi presented misguiding information and impaired the benefit of shareholders.
Whether Didi's effort to win back the Chinese government's approval is yet to be seen; however, it has undoubtedly rendered its reputation as untrustworthy in the US market.
Article by Enoch Gao, EqualOcean, an investment research firm focusing on China.