- Chinese authorities braced to conclude a yearlong probe into DiDi Global Inc's DIDIY cybersecurity practices by imposing a penalty of over $1 billion, the Wall Street Journal reports.
- China looks to ease an earlier restriction banning Didi from adding new users to its platform and allow the Beijing-based technology company's mobile apps to be restored to domestic app stores once the penalty is declared.
- The penalty will also pave the way for Didi, boasting of tens of millions of monthly users in China, to kick-start a new share listing in Hong Kong.
- The penalty would account for ~4% of Didi's $27.3 billion total sales in 2021.
- In 2021, Didi became a high-profile Chinese government target, with shares plunging over 80% from their listing price following a data-security investigation into the company.
- The probe came just days after the company's US IPO in June 2021.
- China also ordered app stores in the country to remove Didi's mobile apps.
- Didi was delisted from the US exchange in June 2022 to resolve its impending cybersecurity investigation.
- DiDi reportedly ignored cybersecurity regulators' advice to delay its US listing over concerns that the public share offering documents containing sensitive information and data.
- China unleashed an intense crackdown on the domestic tech sector triggered by the botched IPO of Alibaba Group Holding Limited BABA fintech affiliate Ant and extended across the industry.
- Price Action: DIDIY shares traded higher by 6.83% at $3.13 on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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