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Didi's $4 bln IPO order books to close Monday - sources

Reporting by Yilei Sun in Beijing and Scott Murdoch in Hong Kong; Editing by Christopher Cushing
June 28, 2021 12:29 PM +07

HONG KONG, June 28 (Reuters) - China's biggest ride-sharing firm Didi Global Inc will close the investor order books for its U.S. initial public offering (IPO) to raise up to $4 billion one day early on Monday, two people with direct knowledge of the matter said.

The people could not be identified as the information is not yet public. Didi did not respond to a request for comment.

The books will close at 5pm in each region on Monday, the people said.

Didi set a price range of $13 to $14 per American Depositary Share (ADS), a regulatory filing showed on Thursday, and said it would offer 288 million such shares in the IPO. At the top of the range, the deal will raise $4.03 billion.

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Didi says app takedown may hit revenue, other U.S.-listed Chinese firms probed

Tony MunroeYilei SunScott Murdoch
July 5, 2021 6:31 PM +07

BEIJING/HONG KONG, July 5 (Reuters) - Ride-hailing giant Didi Global Inc (DIDI.N) said a regulatory order that its app be removed from app stores in China could hurt revenue, while other newly U.S.-listed Chinese firms also found themselves the subject of cybersecurity investigations.

Sunday's takedown order from the Cyberspace Administration of China (CAC) comes just two days after the regulator announced an investigation into Didi and less than a week after it made its debut on the New York Stock Exchange. read more

Didi told Reuters on Monday that it was unaware before the initial public offering (IPO) that the CAC would launch a cybersecurity investigation or order a halt in China to new user registrations and a suspension of app downloads. read more

The CAC's move also comes amid a widespread regulatory squeeze on Chinese tech firms that began with the scuttling of a $37 billion listing planned by Alibaba fintech affiliate Ant Group late last year.

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Interesting update from Reuters that regulators had suggested they delay their IPO.
22.04.19【豐富│東南西北龍鳳配】Pt.3 大國數據安全多重要?「滴滴」示範一次給你看!
Reading Didi recently published annual report:

"● We intend to delist our ADSs from the NYSE, which may negatively affect the price of and liquidity in our securities,
including the ADSs. We will not apply for listing of our shares on any other stock exchange before completion of the delisting.

● The trading price of our ADSs is likely to be volatile, which could result in substantial losses to investors."

If one (say Peter, for easier illustration) buys DiDi's ADS on the NYSE today, does that mean that Peter is waiting for Didi to buy back the shares from him prior to the delisting? Or it could also be that Peter ends up holding on to his DiDi's ADS, just that they are not traded anywhere, and that the value of these ADS would only be priced by the market only after DiDi is relisted on another exchange?

Does anyone also know if consumers and drivers in China are still using the DiDi App pretty much as before or has Didi lost its market-leading position?
Think most exchanges should have mandatory delisting offers. I guess Peter would own the ADS unless Didi dismantled the ADS depository arrangement which then makes Peter the direct shareholder / member of private Didi

My main issue is that Didi had angered the Chinese regulators:

(06-07-2021, 09:53 AM)Shrivathsa Wrote: [ -> ]Interesting update from Reuters that regulators had suggested they delay their IPO.

Seems like Didi still is the market leader

On the "Peter" Question, the shares can be delisted without Didi making a cash offer. Peter will be holding a certificate but will be entitled to any dividend Didi announces during its delisted phase.