Didi Extends Slump as China Weighs Changes to U.S. IPO Rules

(Bloomberg) -- Didi Global Inc. extended losses in U.S. premarket trading, falling further from the price the shares were sold at in last week’s initial public offering after a Chinese crackdown on firms listing their shares abroad.

The ride-hailing company traded at $12.14 as of 4:09 a.m. in New York, after falling as low as $11.90. The stock last closed at $12.49. The American depositary shares slumped 20% on Tuesday after China issued a sweeping warning to some of its biggest companies, vowing to tighten oversight of data security and overseas listings. Didi shares were sold at $14.

Didi’s offering was the second-largest U.S. IPO for a Chinese firm on record. The company lost about $15 billion of market value on Tuesday alone.

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