Here's Why DiDi Stock Surged Today
Shares of DiDi Global (NYSE: DIDI) jumped on Thursday following reports that the Chinese ride-hailing giant could go private. As of 11:33 a.m. EDT, DiDi's stock price was up more than 10% after rising as much as 19.8% earlier in the session.
DiDi is considering going private to appease Chinese regulators and allow investors to recoup some of their losses, according to The Wall Street Journal. The plan could reportedly include a tender offer for its newly public shares at a price equal to its $14 initial public offering (IPO) price.
DiDi held its IPO on June 30, despite reports that Chinese regulators recommended it delay its stock offering so it could conduct an intensive cybersecurity review before its public debut. Didi pressed forward with its IPO, and China's Cyberspace Administration responded by ordering it to cease new user registrations. The regulatory crackdown blindsided many investors, and DiDi's stock price plunged in response.
Source Fool.com
