7/5/2021, 9:33 PM (Source: TeleTrader)
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Report: China suggested Didi to postpone US IPO

The Cyberspace Administration of China (CAC) suggested Didi Chuxing Technology Co. delay its initial public offering (IPO) on the New York Stock Exchange (NYSE) and first examine its strategy on online security, the Wall Street Journal (WSJ) reported on Monday.

According to people familiar with the matter, the CAC expressed its concern that Didi going public in the US could lead to users' data "falling into foreign hands." However, the company decided to proceed with the move as it did not receive a direct order not to do so.

Didi began trading on the NYSE on June 30 at a starting price of $16.65 per share after raising $4.4 billion in the IPO. In response, the CAC ordered the ride-hailing application to be removed from Google's Play Store and Apple's App Store to protect the country's "national security and the public interest."

Baha Breaking News (BBN) / JR