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Didi Shares Slide to Another Record Low as Post-IPO Lockup Ends



Didi Global Inc.’s shares fell to another record low Monday after a “lockup” period expired following its June initial public offering, even as the Chinese ride-hailing company sought to prevent employees from selling their stock.

The end of Didi’s 180-day lockup period, which was based on the June 29 date of its listing prospectus, freed up shares held by the firm’s early backers such as SoftBank Group Corp., Uber Technologies Inc. as well as international investors such as hedge funds, mutual funds and private-equity firms that collectively pumped billions of dollars into Didi before its IPO. Many of these shareholders have been sitting on large, unrealized losses for months.

Didi shares, which had already plumbed new lows last week, fell $0.30 or 5.4% Monday to $5.30, giving the embattled firm a market capitalization of $25.6 billion, according to FactSet.

The Beijing-headquartered company went public on the New York Stock Exchange after selling shares at $14 apiece and raising $4.4 billion in the biggest U.S. IPO by a Chinese company since Alibaba Group Holding Ltd.’s 2014 blockbuster listing. Didi’s market capitalization briefly neared $80 billion following its trading debut, and plunged after Chinese regulators launched a probe into the company’s cybersecurity and forced some of its popular apps to be taken down.

Earlier this month, Didi said it plans to delist from the U.S. and pursue a listing in Hong Kong, without specifying how it would do it. That has created uncertainty for investors, causing its shares to slide further.

Didi is in talks to list in Hong Kong “by introduction,” according to a person familiar with the matter, meaning the company would go public on the city’s stock exchange without raising fresh funds or issuing new shares.

Didi has restricted its employees from selling shares in the company, according to people familiar with the matter. The selling ban, which doesn’t have a stated end date, also applies to shares and stock options owned by former employees who left after Didi went public, they added. The company intends to lift the restriction after its shares are listed in Hong Kong, one of the people said. The selling ban was earlier reported by LatePost, a Chinese media outlet specializing in technology and internet companies.

Lockup agreements—which are common in IPOs—prevent early investors and company employees from selling their shares in the first months after a firm goes public. The restriction helps prevent a flood of shares from hitting the market shortly after a company’s listing, which could cause heavy selling pressure. Typically, the end of the lockup period gives early investors the opportunity to cash in on their stakes.

Many of Didi’s pre-IPO investors bought stakes when the company’s private valuation was more than $50 billion, and have seen their stakes in the ride-hailing firm fall in value during the lockup period, regulatory filings show.

With Didi’s shares now more than 60% below their IPO price, those investors have to decide whether it is worth waiting for the ride-hailing firm to go public in Hong Kong and improve its business performance over the long run, or realize the losses on their investments.

SoftBank held a 20.1% stake in Didi at the time of the ride-hailing firm’s IPO. The shares cost the Japanese investor approximately $12 billion initially, according to a recent SoftBank quarterly report. That initial investment had shrunk by roughly 58% to $5.1 billion, based on Didi’s closing price on Monday. A SoftBank spokesman declined to comment.

Uber had a 11.9% stake in Didi when it listed. The San Francisco-headquartered ride-hailing company acquired the stake after merging its former Chinese business with Didi several years ago. During the three months ended on Sept. 30, Uber recognized an unrealized loss of $3.2 billion from its Didi investment, according to Uber’s latest quarterly report. The shares have since fallen further in value.

A spokesman for Uber said the company doesn’t plan to sell its Didi shares immediately. The company has sufficient liquidity that gives it the flexibility to maintain all its positions, including Didi’s, Uber’s Chief Financial Officer Nelson Chai said in the company’s third-quarter earnings call in early November. “We are not a fund manager, and we will monetize the stakes we view as purely financial at the appropriate time, while continuing to hold more strategic stakes for the long run,” Mr. Chai added.

Write to Dave Sebastian at

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Appeared in the December 28, 2021, print edition as ‘Didi Shares Slide to Record Low.’

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Teladoc Tumbled 38% After Big First-Quarter Loss. Is It Just a Pandemic Play?



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After pandemic drop, Canada’s detention of immigrants rises again By Reuters



© Reuters. FILE PHOTO: Two closed Canadian border checkpoints are seen after it was announced that the border would close to “non-essential traffic” to combat the spread of novel coronavirus disease (COVID-19) at the U.S.-Canada border crossing at the Thousand Isla

By Anna Mehler Paperny

TORONTO (Reuters) – Canada is locking up more people in immigration detention without charge after the numbers fell during the pandemic, government data obtained by Reuters shows.

Authorities cite an overall rise in foreign travelers amid easing restrictions but lawyers say their detained clients came to Canada years ago.

Canada held 206 people in immigration detention as of March 1, 2022 – a 28% increase compared with March 1 of the previous year. Immigration detainees have not been charged with crimes in Canada and 68% of detainees as of March 1 were locked up because Canada Border Services Agency (CBSA) fears they are “unlikely to appear” at an immigration hearing, according to the data.

The rise puts Canada at odds with Amnesty International and other human rights groups that have urged Ottawa to end its use of indefinite immigration detention, noting CBSA has used factors such as a person’s mental illness as reason to detain them.

A CBSA spokesperson told Reuters that “when the number of entries (to Canada) goes up, an increase in detention is to be expected.” CBSA has said in the past it uses detention as a last resort.

A lawyer told Reuters her detained clients have been in Canada for years.

In the United Kingdom, too, immigration detention levels rose last year after dropping earlier in the pandemic, according to government statistics. Unlike Canada, the United States and Australia, European Union member states have limits on immigration detention and those limits cannot exceed six months.

The rise in detentions puts people at risk of contracting COVID-19 in harsh congregate settings, refugee lawyers say.

Julia Sande, Human Rights Law and Policy Campaigner with Amnesty, called the increase in detentions “disappointing but not surprising,” although she was reluctant to draw conclusions from limited data.

The number of immigration detainees in Canada dropped early in the pandemic, from a daily average of 301 in the fourth quarter (January through March) of 2019-20 to 126 in the first quarter (April through June) of 2020-21.


Detaining fewer people did not result in a significant increase in no-shows at immigration hearings – the most common reason for detention, according to Immigration and Refugee Board data.

The average number of no-shows as a percentage of admissibility hearings was about 5.5% in 2021, according to that data, compared to about 5.9% in 2019.

No-shows rose as high as 16% in October 2020, but a spokesperson for the Immigration and Refugee Board said this was due to people not receiving notifications when their hearings resumed after a pause in the pandemic.

Refugee lawyer Andrew Brouwer said the decline in detention earlier in the pandemic shows Canada does not need to lock up as many non-citizens.

“We didn’t see a bunch of no-shows. We didn’t see the sky fall … It for sure shows that the system can operate without throwing people in jail,” Brouwer said.

He added that detainees face harsh pandemic conditions in provincial jails – including extended lockdowns, sometimes with three people in a cell for 23 hours a day.

Refugee lawyer Swathi Sekhar said CBSA officials and the Immigration and Refugee Board members reviewing detentions took the risk of COVID-19 into account when deciding whether someone should be detained earlier in the pandemic but are doing so less now.

“Their position is that COVID is not a factor that should weigh in favor of release,” she said.

“We also see very, very perverse findings … [decision-makers] outright saying that individuals are going to be safer in jail.”

The Immigration and Refugee Board did not immediately respond to a Reuters request for comment.

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Nasdaq futures rise as market attempts comeback from April sell-off, Meta shares soar



Stock futures rose in overnight trading as the market shook off the April sell-off and investors reacted positively to earnings from Meta Platforms.

Futures on the Dow Jones Industrial Average added 70 points or 0.2%. S&P 500 futures gained 0.7% and Nasdaq 100 futures jumped 1.2%.

The moves came as shares of Meta surged more than 18% after hours following a beat on earnings but a miss on revenue, a sign that investors may see signs of relief in the beaten-up tech sector. Shares were down 48% on the year heading into the results.

Meanwhile, shares of Qualcomm gained 5.6% in extended trading on the back of strong earnings while PayPal rose 5% despite issuing weak guidance for the second quarter.

“I think a lot of people want to believe that earnings are going to pull us out of this, but earnings are not what got us into this,” SoFi’s Liz Young told CNBC’s “Closing Bell: Overtime” on Wednesday. “… But the reality is there are so many macro headwinds still in front of us in the next 60 days that the market is just hard to impress.”

The after-hour activity followed a volatile regular trading session that saw the Nasdaq Composite stoop to its lowest level in 2022, as stocks looked to bounce back from a tech-led April sell-off. The index is down more than 12% since the start of April.

In Wednesday’s regular trading, the tech-heavy Nasdaq ended at 12,488.93, after rising to 1.7% at session highs. The Dow Jones Industrial Average rose 61.75 points, or 0.2%, to 33,301.93 propped up by gains from Visa and Microsoft, while the S&P 500 added 0.2% to 4,183.96.

Investors await big tech earnings on Thursday from Apple, Amazon and Twitter, along with results from Robinhood. Jobless claims are also due out Thursday.

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