Canadians Sell Out, Temasek Experiences Pain on Didi Global Holdings
Posted on 03/11/2022
Shares of DiDi Global Inc. tanked 44% on Friday. This is after news that ride-hailing giant Didi suspended preparations for its planned Hong Kong listing. The Cyberspace Administration of China informed DiDi executives that their proposals to prevent security and data leaks had fallen short of requirements. Didi’s main apps were removed from local app stores in 2021.
Didi Chuxing is a mobile transportation platform. DiDi Global is known as the “Uber of China”. Didi Global went public in the U.S. in 2021. However Didi Global’s shares dropped after the Chinese government suspended the ride-sharing app. In December 2021, DiDi Global said it planned to delist from the U.S. and move its listing to Hong Kong.
Looking at ownership filings, Canada Pension Plan Investment Board sold 5,571,935 shares, or all of its holdings in Didi Global, in the December 31, 2021 filing period.
Temasek Holdings kept its holdings in Didi Global at the December 31, 2021 filing period date. Temasek Holdings had 29,428,572 shares at the December 31, 2021 period.
Hypothetical Scenario for Temasek
US$ 15.53, Price Close of Didi Global (July 2, 2021) – 29,428,572 shares – US$ 457,025,723 estimated position value
US$ 4.98, Price Close of Didi Global (December 31, 2022) – 29,428,572 shares – US$ 146,554,289 estimated position value
US$ 1.89, Price Close of Didi Global (March 11, 2021) – 29,428,572 shares – US$ 55,620,001 estimated position value