China Ride-Sharing Platform DiDi Plunges 6.6% On Report President Jean Liu Plans To Depart

Shares in China ride-sharing app DiDi Global plunged 6.6% in New York Stock Exchange trade on Monday following a Reuters report that President Jean Liu plans to leave the company and expects the government to eventually take control of the business.

Liu, who is also a co-founder, “has told some close associates that she intends to step down,” Reuters reported yesterday, citing two sources familiar the matter.

The executive has also “in recent weeks told some associates that she expected the government to eventually take control of DiDi and appoint new management,” the two sources said, according to Reuters.

Monday’s close of $7.75 was 45% below its June IPO price of $14 a share and the Beijing-headquartered company’s fourth-worst close since it listed in New York. The company faces regulatory probes in China and class-action lawsuits in connection with its listing in New York.  Its app was banned from the app store in China days after the listing.

Liu is the daughter of China computer industry pioneer Liu Chuanzhi and once worked at Goldman. DiDi investors include Softbank New Vision Fund, which holds a 20% stake, Uber 12%, and Tencent 6%, according to the company’s prospectus.

Chairman Cheng Wei, 38, who holds an approximately 6.5% stake, has a fortune worth $2.4 billion, according to today’s Forbes Real-Time Rich List.

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The Tycoon Herald