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BEIJING, CHINA – OCTOBER 14 2020: Will Wei Cheng, chairman and chief executive officer of Beijing … [+]
China News Service via Getty Images
Weighed down by the potential of more bad news, shares of Chinese ride-hailing firm DiDi Global tumbled 11% on Thursday. That pushed the fortune of CEO Will Wei Cheng down some $400 million in one day.
It’s been a painful month for Didi Global. Days after its June 30th IPO on the New York Stock Exchange, the Cyberspace Administration of China launched a probe into the company, citing data security risks. Didi Global was forced to remove its app from the Chinese app store, and the stock fell. On Thursday morning, Bloomberg, citing people familiar with the matter, reported that Chinese regulators are discussing further penalties against Didi Global, including a fine or a possible delisting. That sent shares down to a low of $10.17; ultimately closing at $10.20.
As a result, the net worths of DiDi’s CEO Cheng and its President Jean Qing Liu have taken big hits. Cheng is now worth $3.2 billion – down from $4.4 billion at the IPO, Forbes estimates. Cheng owns approximately 6.5% of the company.
Liu, who owns 1.6% of the company, saw her net worth drop from $882 million to $782 million on Thursday. On the IPO day, she was worth $1.1 billion.
Other losers in the DiDi IPO saga include Softbank, which owns a 20.2% stake, Uber, with 12% and Tencent with a 6.4% stake. Investors can’t be too pleased with the post-IPO turn of events. The market capitalization, which was $67 billion on the day of the IPO, ended the trading day Thursday at $49 billion.