FT News Briefing What did Didi’s bankers know before the IPO?
Jul 7, 2021
The podcast dives into Didi's tumultuous IPO, marked by a staggering market value decline after a regulatory crackdown from China. It raises questions about the bankers' knowledge of the looming issues. The discussion shifts to the tensions between Saudi Arabia and the UAE as OPEC faces challenges, highlighting shifting alliances. The Pentagon’s cancellation of a major Microsoft contract adds another layer to the news. Lastly, scrutiny over Hungary's use of EU funds surfaces, raising concerns about transparency and accountability.
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Didi's IPO Disaster
- Didi Chuxing's NYSE IPO turned into a disaster after Chinese regulators investigated alleged privacy violations.
- This caused a 20% stock drop, shocking bankers who claim they were unaware of the issues.
Unforeseen Regulatory Issues
- While there were pre-IPO concerns about Chinese regulatory issues, the severity of the situation was unforeseen.
- Didi's valuation was slightly below expectations, possibly reflecting investor caution.
Impact on Future Chinese IPOs
- The fluctuating relationship between Chinese companies and US stock markets raises uncertainty.
- Didi's situation may deter other Chinese companies from pursuing US IPOs.