Didi global news: Didi Global Inc, the largest ride-hailing business in China, plans to list on the Hong Kong stock exchange in the upcoming year. The company hopes to rebound after a disappointing IPO experience in New York in 2021, according to people familiar with the situation, reported Bloomberg.

According to sources, Didi has strengthened its ties with Chinese regulators during a year-long investigation that resulted in an 8 billion yuan ($1.1 billion) fine last year, in part by maintaining control of its dominance, as per Bloomberg report.

In China, Didi’s market share dropped from nearly 90% to roughly 70%. Any fresh listing would require approval from Chinese authorities, which compelled Didi to delist following its IPO on the fresh New York Stock Exchange last year, said Bloomberg in its news report.

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For investors and staff who saw the startup’s shares plummet from a $80 billion valuation when Chinese regulators began an investigation into the business only a few days after it went public, the plan may finally pay off. The company was valued at approximately $16 billion when the stock, which is now exclusively traded over-the-counter, recently changed hands for $3.36, according to the news report.

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With a fresh public offering, major supporters like SoftBank Group Corp could be able to recover part of their losses. SoftBank reportedly spent over $11 billion in Didi, and it currently owns a $3.2 billion investment, or 20% of the company, as per Bloomberg report.

An email requesting response from a Didi official was not answered. SoftBank opted not to respond.

According to sources, Didi recently told current employees that they might sell their shares back to the company under the employee equity ownership programme. This move is thought to be a part of the company’s preparations for listing on the Hong Kong stock exchange. According to numerous former employees, there was a delay in the 180-day lockup requirement following the US listing, which led to a brief window in early 2022 during which several Didi employees sold stock options, as per Bloomberg report.

Giving Didi the go-ahead for a listing would assist Xi Jinping’s administration in demonstrating support for business after years of crackdowns that shook investors’ and entrepreneurs’ trust. With the country’s economy reeling from a real estate slump, Beijing now requires the assistance of private industry. Growing government backing has been observed by many businesses, especially in technology and other critical industries.

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The company, headed by President Jean Liu and Chief Executive Officer Cheng Wei, attempted to turn the business around in the months following Beijing’s investigation into Didi by implementing a number of layoffs and narrowing its focus.

A number of companies have been trying to list on the Hong Kong stock exchange for years, but many have failed. Dalian Wanda Group Co. recently informed investors that the IPO will probably happen next year after previously missing a deadline to list shares of its management subsidiary in Hong Kong for a third time, as per Bloomberg report.

As of January, Didi’s primary applications were once again available in the largest mobile stores in the nation, enabling the ride-hailing behemoth to restart expansion following over a year of regulatory uncertainty. Not long after the applications were brought back to life, Didi’s valuation spiked to a peak of $23 billion.

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