Didi Global Inc. agreed to pay US $ 740 million to resolve a demand for shareholders aimed at the management of its turbulent initial public offer of 2021, assuming a single position that led the China shared trip leader to red numbers.
The company announced the agreement on Thursday along with its quarterly results. Didi registered losses of US $ 351 million in the quarter of June, compared to a gain of US $ 119 million from the previous year. Income grew 11%, driven by the increase in transactions on their platform.
Known as the Chinese response to Uber Technologies Inc., Didi, based in Beijing, debuted in New York in 2021 with great success. However, almost immediately attracted the regulatory attention of the powerful administration of the cyberspace of China, which opened an investigation into its data security practices before suspending its application. Didi was finally excluded from the main platform.
The demand in question focused on Si Didi had prior knowledge of scrutiny and possible risks. Chinese regulators had requested Didi months before delaying their IPO due to national security concerns related to their huge amount of data, according to Bloomberg News at that time.
We denied any allegation of guilt, responsibility, irregularity or damage. We celebrate the agreement to avoid costs and interruption of the development of our business that could derive from new litigation, Didi declared in its statement.
Didi’s shares are currently quoted in the New York Extrabursat market and remain significantly below its Upper Price of US $ 14. The company aspires to quote on the Hong Kong Stock Exchange, although the deadline is uncertain.
Since its exclusion from the stock market, the company has focused on reactivating growth in an economy in crisis. The average daily transactions in China reached US $ 37.1 million, a new record, in the quarter of June.
