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Highlights
- DiDi Global Inc. (NYSE:DIDI) stock gained after China regulators said they are preparing to lift the ban on the company as the probe nears a conclusion.
- In May this year, the company notified the New York Stock Exchange (NYSE) of its plan to delist from the exchange,
- The stock swayed between US$18.01 to US$1.37 since its listing on June 30, 2021. Didi’s current market capitalization is US$12.06 billion.
The American Depositary Shares of DiDi Global Inc. (NYSE: DIDI) were up more than 39% to US$2.5871 at 1:29 pm ET on Monday after Chinese regulators said they are concluding the probe into the company and preparing to lift the ban on adding new users to its platform.
The year-long probe negatively impacted the stock’s performance. It declined over 86% since its listing on June 30, 2021. On June 3, 2022, it closed at US$1.85 per share.
In May this year, the company notified the New York Stock Exchange (NYSE) of its plan to delist from the exchange after approval from Didi shareholders.
According to people familiar with the matter, the regulators may allow the domestic app stores to reinstate Didi’s mobile app for users possibly by this week.
The ride-hailing company’s mobile app was removed from app stores in July last year when the government’s data security probe started, citing national security. The probe’s end may come possibly next month. Sources told WSJ said that Didi might still face a financial penalty.
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Besides, DiDi might also offer the government a 1% equity stake in the company and a say in the corporate decision-making. DiDi’s current market capitalization is US$12.06 billion. It suffered a huge decline in market value as its share prices plummeted. The stock swayed between US$18.01 to US$1.37 since its June 30, 2021, US listing.
Beijing-based DiDi Global Inc offers ride-hailing services through its mobility technology platform. The company provides taxi-hailing, hitch, chauffeur, and other forms of shared mobility through its app.
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Financials:
For the year ended December 31, 2021, DiDi Global reported revenue of RMB173.8 billion (US$27.28 billion) compared to RMB141.7 billion in fiscal 2020.
Its net loss increased to RMB49.34 million (US$7.74 billion) compared to a net loss of RMB10.5 billion in 2020 and RMB9.7 billion in 2019.
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Bottom line:
According to observers, the conclusion of the DiDi probe indicates China’s intent to stimulate the country’s economic growth, which slowed down amid lockdowns and macroeconomic stress.
