China’s government on Friday said it would launch a cybersecurity review of ride-hailing services provider Didi Global (DIDI). Didi stock tumbled on Beijing’s move, which comes two days after Didi’s initial public offering.
Didi stock fell 9% to 14.89 in early trading on the stock market today. Shares in Didi rose 1% on Wednesday, the first day it began trading, then popped nearly 16% on Thursday.
Didi will not be able to sign up new users of its ride-hailing network during the cybersecurity review, according to reports.
Didi, which operates China’s largest ride-hailing network, raised $4.4 billion in its IPO. It listed on the New York Stock Exchange.
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Founded in 2012, Didi operates in 16 countries, including Brazil and Mexico. It has 493 million active annual users and 15 million annual active drivers.
In the first quarter, Didi Global reported revenue of $6.4 billion, more than double the year-earlier period, with net income of $837 million. For 2020, it had revenue of $21.6 billion, down 8%, as the pandemic cut into business, with a net loss of $1.6 billion.
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