The stock closed down 5.3% and will not trade Monday due to the U.S. LinkDoc’s decision to suspend its US211-million IPO, first reported by Reuters, is likely to be followed by others, analysts said, although they said U.S. The CAC followed up two days later with an order for Didi’s app to be removed from app stores in China, saying the company had illegally collected users’ personal data. “Prior to the IPO, Didi had no knowledge of the CAC’s decisions, announced on July 2 and July 4, 2021, with respect to the cybersecurity review and suspension of new user registrations in China, and the removal of the Didi Chuxing app from the app stores in China, respectively,” Didi said in a statement sent to Reuters. News that the order to remove the apps from sale caught six fund investors who had attended Didi’s IPO roadshow, including two of whom were allocated stock in the deal, off guard. initial public offering valued it recently at more than 67 billion, Didi faces a raft of challenges even as economies. Backed by Alibaba Health Information Technology Ltd, LinkDoc filed for its IPO last month and was due to price its shares after the U.S. One hedge fund source, who could not be named as he was not permitted to speak to the media, said the CAC news was bizarre and unexpected given it came so soon after the IPO. The CAC said its action was to protect national security and the public interest, but spooked investors said the timing would cast a shadow over plans by other Chinese tech companies to list in the United States or raise funds in global markets. ![]() The move was interpreted as a ratcheting up of pressure on Chinese tech companies, which started with the scuttling of a $37 billion listing planned by Alibaba fintech affiliate Ant Group late last year. “The (Chinese Communist) Party had previously targeted Ant Group, which was planning an IPO and was forced to cancel,” said Ryan Fedasiuk, research analyst at Georgetown’s Centre for Security and Emerging Technology. ![]() “But this step is an escalation because it is retroactive, effectively punishing investors that participated in a completed IPO.
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