SEC Probes Didi’s US IPO

The U.S. Securities and Exchange Commission (SEC) will be examining the public offering from Didi in the U.S., Bloomberg writes.

The ride-hailing giant said it’s cooperating with authorities, though there was no information on what would happen in the future with this.

The SEC probe is just more difficulty for Didi, which has been through the wringer after its fallout in China over the U.S. offering from last June.

The company has talked with the Cyberspace Administration of China about a fine and other penalties after going ahead with the IPO over the regulator’s objections.

With all of that going on, Didi said it plans to leave the U.S. market for Hong Kong.

But the company won’t go through with that until the NYSE delisting is done. The vote on that will take place May 23, the report says.

Didi also said it plans to shutter its food delivery service in Japan as of May 25, a PYMNTS report says, as the delisting from NYSE goes on.

Read more: Didi Will Stop Food Delivery in Japan as It Delists in US

“Unfortunately, due to local market conditions, we have made the difficult decision to discontinue DiDi Food in Japan from 25 May 2022 and will focus on our taxi-hailing services in the country,” the company said, according to Nikkei Asia.

That service was rolled out in Japan in 2020. After the shuttering, most of the 200 Japanese staff will be laid off, according to a LinkedIn post.

The ride-hailing unit in Japan is run by a separate company called DiDi Mobility Japan.

According to sources, the food delivery unit didn’t have the best support from the main investor, Softbank. The company had backed the ride-hailing service, but didn’t put money into its food delivery arm in Japan because it was investing in Uber there too.

Didi was once the biggest Chinese ride-hailing firm, but it’s been scaling back the goal to expand internationally after Chinese officials pushed back against the U.S. listing.