SEC Reportedly Investigating Didi After IPO Flop

Chinese ride-hailing company Didi said the U.S. Securities and Exchange Commission is investigating it after the company’s bumpy IPO.

The company disclosed in its annual report this week that the SEC made inquiries regarding the IPO, CNBC reported.

Didi was one of the most anticipated IPOs of last year. A ride-hailing giant in China, the company bought Uber’s operations in the country and had 493 million annual active users at the time of its S-1 filing with the SEC.

Didi went public last year, raising $4 billion through its IPO and reaching a valuation of $73 billion, according to Crunchbase. But after Chinese regulators began investigating the company’s cybersecurity practices and Didi was forced out of the app stores in China, its stock price plummeted. Didi’s stock, which had an IPO price of $14, opened at $1.92 on Wednesday morning.

It was a stunning fall for a company so large and high-profile. Didi said in December that the company would begin the process to delist from the New York Stock Exchange and relist in Hong Kong. It’s unclear where that process stands.

Investors including New Enterprise Associates and Goldman Sachs invested around $22.7 billion in Didi, according to Crunchbase.

Illustration: Li-Anne Dias