F-22Raptor
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Few blockbuster public share sales have been as tortured as Didi Global’s. Within four days of raising $4.4bn in New York in June the Chinese ride-hailing group was hit with an investigation by the authorities in its home market and its mobile application was dropped from app stores in China, preventing new customers from using it. The firm’s share price remained above its initial public offering (ipo) price for just three trading days and has since fallen by more than 40%. Now the company, which was once valued at $70bn and backed by Japanese investment firm SoftBank, says it will delist from American exchanges altogether and relist in Hong Kong.
Investors should consider Didi’s exit a death knell for Chinese ipos in America. Some $1.5trn of Chinese company shares trade in New York. Those listings have already been threatened by American regulations that require all listed companies to provide access to internal auditing documents or face eventual delisting. Chinese officials have refused to allow access, often deeming this material “state secrets”. The dilemma goes back a decade but recent American legislation, which was adopted by the Securities and Exchange Commission on December 2nd, will purge all non-compliant companies from exchanges within two to three years, with potentially devastating consequences for some investors.
https://www.economist.com/business/...s-the-death-knell-for-chinese-ipos-in-america
Investors should consider Didi’s exit a death knell for Chinese ipos in America. Some $1.5trn of Chinese company shares trade in New York. Those listings have already been threatened by American regulations that require all listed companies to provide access to internal auditing documents or face eventual delisting. Chinese officials have refused to allow access, often deeming this material “state secrets”. The dilemma goes back a decade but recent American legislation, which was adopted by the Securities and Exchange Commission on December 2nd, will purge all non-compliant companies from exchanges within two to three years, with potentially devastating consequences for some investors.
https://www.economist.com/business/...s-the-death-knell-for-chinese-ipos-in-america
