Shares in Chinese ride-sharing app DiDi Global plunged 6.6% on the New York Stock Exchange on Monday. Reuters reported that President Liu Qing plans to leave the company and expects the government to ultimately control the business.
Co-founder Liu “told a close companion that he intends to resign,” Reuters reported yesterday, citing two sources familiar with the matter.
“We’ve told some people in the last few weeks that we’re hoping that the government will eventually control DiDi and appoint a new management team,” Reuters said.
Monday’s closing price of $ 7.75 was 45% below June’s IPO price of $ 14 per share, the fourth worst closing price since the Beijing-based company went public in New York. The company faces regulatory investigations and class actions in China in connection with its July listing in New York. The app was banned from the Chinese app store a few days after listing.
Liu is the daughter of Liu Chuanzhi, a pioneer in the Chinese computer industry, and once worked for Goldman. According to the company’s prospectus, DiDi’s investors include Softbank New Vision Fund, which holds a 20% stake, Uber 12% and Tencent 6%.
According to today’s Forbes Real-Time Rich List, 38-year-old Chairman Cheng Wei, who holds about 6.5% of the stake, holds $ 2.4 billion worth of property.
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