China’s biggest ride-hailing company, Didi Global Inc., aims to list shares on the Hong Kong stock exchange next year, plotting a comeback from an ill-fated initial public offering in New York in 2021, according to people familiar with the matter.
Didi has improved its relationship with Chinese regulators after a year-long probe that ended with an 8 billion yuan ($1.1 billion) fine last year, in part by keeping its dominance in check, said the people, asking not to be named because the discussions are private. Didi’s market share in China has declined from about 90% to roughly 70%. Chinese authorities, which forced Didi to delist last year after its debut on the New York Stock Exchange, would have to sign off on any new listing.
The plan could mean a long-awaited payoff for investors and employees, who watched the startup’s shares nose-dive from a valuation of $80 billion when Chinese regulators opened a probe into the company just days after its initial listing. The stock, which is now only traded over-the-counter, last exchanged hands at $3.36, valuing the firm at about $16 billion.
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