Ride-hailing firm Didi Global denies media report it plans to go private

Didi’s shares are trading 14.5% below the U.S. IPO price.

Ride-hailing company Didi Global on Thursday denied a media report that the company was considering going private to placate Chinese authorities and compensate investor losses since it listed in the United States.

The Chinese company has been mulling delisting plans as a crackdown in China widens and it has received support from cybersecurity regulators, the Wall Street Journal reported, citing people familiar with the matter.

Didi, which listed in New York last month after raising $4.4 billion in an initial public offering (IPO), said on Weibo that a “rumour” that it could go private was not true, and it was “actively and fully” cooperating with a cyber security probe.

Shares in Didi, which jumped as much as 40% to $12.42 in premarket trading after the WSJ report, pared gains after the company denial and were trading up 14.5%. The stock has lost about 37% since its listing on the NYSE on June 30.

Days after Didi’s market debut, China’s cyberspace regulator launched a probe into the company and asked it to stop registering new users, citing national security and the public interest.

The regulator also said it would remove the mobile apps operated by Didi from app stores.

Didi has been in talks with bankers, regulators and key investors to try to resolve the problems following its listing on the New York Stock Exchange, the WSJ report said.

The WSJ reported that Didi had asked its major underwriters to assess investors’ views regarding a privatisation plan, as well as the pricing range that they would accept.

A take-private deal that would involve a tender offer for its publicly traded shares is one of the preliminary options being considered, the WSJ report said.

Didi’s listing was the biggest stock sale by a Chinese company since the 2014 listing of Alibaba Group Holding Ltd.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.