The US Securities and Exchange Commission is investigating Chinese ride-hailing giant Didi Chuxing’s botched New York initial public offering, adding to the company’s regulatory woes after Beijing launched a national security probe into the group last year.
Chinese authorities opened an investigation into Didi two days after the company’s $4.4bn IPO last June and forced domestic app stores to remove all of the group’s core services, sending its share price plummeting and putting severe constraints on its ability to sign-up new users.
Revenues were down 12.7 per cent in the fourth quarter and Didi’s stock has fallen more than 85 per cent since its IPO, cutting the value of the stake of SoftBank’s Vision Fund, its largest shareholder, by almost $10bn.