Didi Global (DIDI) - Get DiDi Global Inc. Report shares slumped lower Friday after cybersecurity regulators in China said they will investigate the recently-listed ride sharing group just days after its $8 billion IPO.
China's Cyberspace Administration also said it has asked Didi to stop new user registrations during its investigation, which is says it designed to "prevent national data security risks, maintain national security protection and protect the public interest.
Didi said it plans to cooperate with authorities and conduct it own 'comprehensive examination' of cybersecurity risks.
Didi shares were marked 7% lower in early trading Friday to change hands at $15.32 each.
Didi, which had more than double the revenues of Uber Technologies (UBER) - Get Uber Technologies, Inc. Report last year, and plans to have 800 million monthly active users by 2022, ended its first day of trading at just over $14 per share -- its IPO price -- following the biggest listing for a China based company in seven years on Wednesday.
Didi raised $4.4 billion through the sale of 317 million ADRs in its much-anticipated offering, around 30 million more than originally planned, with shares trading as high as $18 each during the listing's early peak.
Asia-based tech giants SoftBank (SFTBY) , Tencent (TCEHY) and Alibaba BABA are among Didi's main backers, while the company itself if formally known as Xiaoju Kuaizhi Inc. Uber, which was essentially forced out of the China market after it failed to take on Didi's meteoric rise, took a stake in the group in 2016 when it merged its unit with its Beijing based rival.