(Bloomberg) Chinese ride-sharing giant Didi Global rose as much as 35% following reports it is contemplating going private. The ride giant has since denied the news.
Prior report from WSJ indicated that Didi seeks to please Chinese regulators after a series of entanglements and compensate investors affected by losses since it listed in the US on June 30.
It was alleged that the ride-hailing firm has been discussing with regulators, bankers, and investors on how to solve the concerns raised since it listed on the NYSE according to “people familiar with the matter”.
Didi now says the privatization reports are untrue, which has sent its stock 20% lower from the earlier jump.
Didi became the biggest stock sale by a Chinese company since 2014’s debut of Alibaba in the US, raising about $4.4 billion from selling shares at $15 apiece.
The ride giant traded at $18 in the first days of NYSE debut, but plunged strongly to close at $8.87 on Wednesday following crackdown by Beijing over the hasty listing.
DIDI: NYSE is up +15.78% on premarket.
