The turbulent initial public offering of Chinese ride-hailing giant Didi Chuxing is now being investigated by the US Securities and Exchange Commission, piling more regulatory pressure on the company after Beijing launched a national security probe into the group last year, reports the Financial Times. Chinese authorities opened an investigation into Didi two days after the company’s $4.4 billion IPO last June and forced domestic app stores to remove all of the group’s core services, putting a stopper on the company’s ability to register new users.
Revenues were down 12.7% in the fourth quarter and Didi’s stock has fallen more than 85% since its IPO, cutting the value of the stake of SoftBank’s Vision Fund, its largest shareholder, by almost $10 billion.
Didi said in its annual report on Monday that “the SEC contacted us and made inquiries in relation to the offering.”
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