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DiDi’s value has plummeted since it listed in the U.S. last year.
Yan Cong/Bloomberg
Shares of Chinese ride-hailing company
DiDi Global
gained after it was reported that carmaker China FAW Group is considering taking a stake in the firm.
DiDi (ticker: DIDI) rose 6% in premarket trading to $1.96.
It has come under fire from Chinese authorities after going through with a $4.4 billion U.S. listing. Shares are down more than 60% this year. Shareholders this week voted to delist from the New York Stock Exchange to better cooperate with China’s probe into the firm’s cybersecurity.
DiDi is also facing an investigation from the Securities and Exchange Commission into its IPO last year.
FAW, one of China’s biggest automotive firms, has reached out to DiDi executives about becoming a major shareholder and help the company solve issues related to data security, Bloomberg reported Friday. Discussions may not lead to any transaction.
DiDi and FAW didn’t immediately respond to requests for comment.
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Source: https://www.barrons.com/articles/didi-stock-price-chinese-auto-giant-faw-51653641774?siteid=yhoof2&yptr=yahoo