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China tech

U.S. securities regulator probes Didi Global's $4.4bn IPO

Chinese ride-hailing giant says it is cooperating with American watchdog

A screen on the floor of the New York Stock Exchange on December 3, 2021. Didi's U.S. IPO has also been scrutinized by Chinese authorities.   © Reuters

(Reuters) -- The U.S. Securities Exchange Commission is investigating Didi Global over its $4.4 billion initial public offering in the United States in June last year, the Chinese ride-hailing giant said.

Didi was cooperating with the U.S. securities regulator's investigation related to the offering, "subject to strict compliance" with Chinese law, the company said in its annual filing on Monday.

"We cannot predict the timing, outcome or consequences of such an investigation," Didi added.

The company did not provide further details about the nature of the investigation.

A spokesperson for the company did not immediately respond to a request for comment on Tuesday. An SEC spokesperson said the agency does not comment on possible investigations.

The IPO came under scrutiny by Chinese authorities last summer over data privacy concerns. Chinese regulators had urged the company to put its listing on hold while a cybersecurity review of its data practices was conducted, sources have told Reuters.

Days after it went ahead, the country's powerful cyberspace watchdog ordered app stores to remove 25 mobile apps operated by Didi and told the company to stop registering new users, citing national security and the public interest.

Didi subsequently announced in December that it would delist its American depositary shares from the New York Stock Exchange (NYSE) and pursue a listing in Hong Kong. Didi shareholders will vote on May 23 on its plans to delist those ADRs.

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