(Bloomberg) — Didi Global Inc. plunged Tuesday morning after regulators in China ordered the removal of the company’s platform from app stores, days after it raised $4.4 billion in the second-largest U.S. initial public offering for a Chinese firm.
American depositary shares of the Beijing-based ride-hailing giant fell as much as 25% to $11.58, wiping out about $22 billion of market value and taking the stock below its $14 IPO price. They traded at $11.99 as of 9:35 a.m. in New York.
The Cyberspace Administration of China barred new users from Didi’s app, citing security risks and tightening its grip on sensitive online data. Didi, whose American Depository Receipts began trading in New York on June 30, said the move may have an “adverse impact” on its revenue in China.
In a statement released Tuesday, China’s State Council said it will improve regulations and laws regarding data security, cross-border data flow and management of confidential information. In addition, the council said it is increasing supervision and revising rules for overseas listings of Chinese companies.