Didi’s shares fell 25% in premarket trading in the United States after the ride-hailing giant’s app was ordered to be removed from Chinese mobile app stores on Sunday, a setback to the US$75 billion firm that floated its shares in New York last week. Didi said on Monday that the app’s prohibition by China’s Cyberspace Administration (CAC) will hurt its earnings in the country. Existing users are not affected by the app’s withdrawal.
Didi shares were trading at US$11.59 in premarket trade on Tuesday, significantly below their IPO price of US$16.65 on June 30. The stock markets in the United States were closed on Monday. After discovering that Didi had illegally gathered users’ personal data, the CAC stated it has ordered app vendors to remove Didi’s app from their stores. (Thyagaraju Adinarayan contributed reporting, and Sumeet Chatterjee edited the piece.)
Reuters is the source of this information./n
