Didichuxing: "Next year's Hong Kong stock market listing is a rumor... No plans"

Didi Chuxing, which faced setbacks during its listing process on the New York Stock Exchange, has denied rumors of a Hong Kong stock market listing next year. The company stated that it will focus solely on its ride-hailing business, including services for passengers, drivers, and partners, for the time being.

On the 18th, Chinese economic media Caixin reported that Didi told the outlet that the rumors about a Hong Kong stock market listing next year are "just rumors" and that the company will "focus on its services."

[Image source=Reuters Yonhap News]

Last year, Didi bolstered its listing prospects by repurchasing employee-held shares. The company’s largest shareholder is SoftBank Group (SBG), which initially invested $11 billion (approximately 15.191 trillion KRW), but currently holds only a 20% stake. However, Didi emphasized, "We have maintained regular communication with investors and have progressed the company’s business together," adding, "There are currently no plans for an initial public offering (IPO)."

Didi Chuxing, China’s largest ride-sharing service provider, went public on the New York Stock Exchange on June 30, 2021, despite pressure from Chinese authorities. However, just two days after the listing, on July 2, it came under intense cybersecurity investigations by regulators and had to suspend some services. Less than a year after the listing, on June 13 of the following year, Didi ultimately withdrew its listing. During this process, China imposed a fine of 8 billion yuan (approximately 1.519 trillion KRW) on the company.

The company initially planned to list directly on the Hong Kong stock market but later stated it would consider this only after normalizing its operations. Didi’s app, which had been blocked from new downloads and registrations within China, was reactivated on January 16, 2023, but there has been no progress on listing efforts.

Following these events, Didi’s market share has somewhat declined amid fierce competition in the industry, but it still holds the top position in the related market. According to financial reports, Didi’s revenue in the first quarter of this year increased by 14.9% year-on-year to 49.072 billion yuan. However, this growth rate has significantly slowed compared to 52% in Q2, 25% in Q3, and 55.4% in Q4 of last year.