Didi Reveals $4.7 Billion Loss Ahead of 2022 Hong Kong Debut
$DiDi Global (Delisted)(DIDI.US$ Didi Global Inc. disclosed a $4.7 billion loss after revenues shrank in the September quarter, revealing the rising cost of a series of regulatory actions that will force China’s ride-sharing leader to shift its listing to Hong Kong next year.
Didi, one of the highest-profile targets of a broad Beijing campaign to rein in the country's giant tech sector, reported $6.6 billion of sales, down more than 13% from the June quarter and 1.6% from a year earlier. The surprise disclosure comes as the company prepares to delist from New York.
The ride-hailing giant is planning to work with $Goldman Sachs(GS.US$, CMB International and CCB International on the shift, which could be a so-called listing by introduction, people familiar with the matter said. That arrangement, which doesn’t involve any fundraising, requires little marketing and would allow U.S. investors to swap their shares for the new stock in Hong Kong.
Once hailed for ousting Uber Technologies Inc. from China, Didi has become one of the highest-profile targets of Beijing’s campaign to rein in its increasingly powerful tech sector. But it incensed regulators after going ahead with the New York debut despite concerns about the security of its data, triggering a series of probes that culminated in the forced delisting. Its shares slid more than 8% in New York, then extended losses in extended trading.
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christopher northing : wow that's a huge loss