Didi loses $22 billion in market cap after China ban

Bloomberg reported that ride-hailing giant Didi’s shares fell as much as 30% to $10.90, wiping out about $22 billion of market value after the removal of its apps from China’s main app stores, days after its $4.4 billion IPO in the United States.

The company’s shares traded at $12.17 as of 6 a.m. in New York, below the $14 IPO price. 

Didi disappeared from China’s main app stores including Apple’s App Store after China’s cyberspace regulator ordered a ban on the new downloads of the app for illegally collecting users’ personal data. 

Didi said the move may have an “adverse impact” on its revenue in China.

According to the sources familiar with the matter, Chinese regulators asked Didi as early as three months ago to delay its landmark U.S. IPO because of national security concerns. 

“We follow strict procedures in collecting, transmitting, storing and using user data pursuant to our data security and privacy policies,” the company said, adding that it’s working on ‘’corrections’’ to bring Didi back to China’s app stores.