“But this step is an escalation because it is retroactive, effectively punishing investors that participated in a completed IPO. “The (Chinese Communist) Party had previously targeted Ant Group, which was planning an IPO and was forced to cancel,” said Ryan Fedasiuk, research analyst at Georgetown’s Centre for Security and Emerging Technology. The move was interpreted as a ratcheting up of pressure on Chinese tech companies, which started with the scuttling of a $37 billion listing planned by Alibaba fintech affiliate Ant Group late last year. The CAC said its action was to protect national security and the public interest, but spooked investors said the timing would cast a shadow over plans by other Chinese tech companies to list in the United States or raise funds in global markets. One hedge fund source, who could not be named as he was not permitted to speak to the media, said the CAC news was bizarre and unexpected given it came so soon after the IPO. Backed by Alibaba Health Information Technology Ltd, LinkDoc filed for its IPO last month and was due to price its shares after the U.S. initial public offering valued it recently at more than 67 billion, Didi faces a raft of challenges even as economies. News that the order to remove the apps from sale caught six fund investors who had attended Didi’s IPO roadshow, including two of whom were allocated stock in the deal, off guard. “Prior to the IPO, Didi had no knowledge of the CAC’s decisions, announced on July 2 and July 4, 2021, with respect to the cybersecurity review and suspension of new user registrations in China, and the removal of the Didi Chuxing app from the app stores in China, respectively,” Didi said in a statement sent to Reuters. The CAC followed up two days later with an order for Didi’s app to be removed from app stores in China, saying the company had illegally collected users’ personal data. LinkDoc’s decision to suspend its US211-million IPO, first reported by Reuters, is likely to be followed by others, analysts said, although they said U.S.
The stock closed down 5.3% and will not trade Monday due to the U.S. While Didi’s initial public offering (IPO) prospectus did mention some of the regulatory risks to its operations, there was no indication that the Cyberspace Administration of China (CAC) would begin investigating the company and ban it from accepting new users during the review.ĭidi said on Monday it was not aware of the probe announced by the CAC on July 2, which sent its shares as much as 10% lower, before its IPO. REUTERS/Florence Lo/Illustration/File Photo It had filed to raise 200 million by offering 10.8 million shares at a price range of 17.50 to 19.50. The company had been expected to price its IPO on Thursday night. FILE PHOTO: The app logo of Chinese ride-hailing giant Didi is seen reflected on its navigation map displayed on a mobile phone in this illustration picture taken July 1, 2021. Sources: after the Didi crackdown, China-based fitness app Keep, podcasting platform Ximalaya, medical data analytics startup LinkDoc pause their US IPO. JLinkDoc Technology, a Chinese healthcare data company specializing in oncology patients, postponed its IPO on Thursday.
0 kommentar(er)
