How Didi went from homegrown hero to being stuck in limbo

Opening Bell 🔔 is Tech in Asia’s free newsletter, which brings you the biggest news and latest trends around publicly listed Asian tech companies. [Read from your browser]( Opening Bell 🔔 Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asia’s publicly listed tech companies. If you’re not a subscriber, get access by [registering here](. Hello {NAME} Didi Global (DIDI, NYSE) was at one time the poster child of China’s thriving tech economy. In 2016, Didi was hailed as a homegrown hero after it dented ride-hailing rival Uber's (UBER, NYSE) global dominance, ushering the Silicon Valley superpower out of the world's most populous country. Not only did Didi end Uber’s business in China, it also became the biggest online ride-sharing platform on the planet. A [blockbuster IPO]( last year was the crowning jewel in its journey to the top. It was the largest US listing by a Chinese company since 2014, raising US$4.4 billion at a staggering valuation of US$73 billion. However, as is so often the case, going public turned out to be an inflection point, after which things went south for the ride-hailing giant. There was trouble brewing underneath the surface: Chinese regulators [had already urged]( Didi to put its US listing on hold over data-related concerns, but the firm went ahead with it anyway. Didi has had several [uncomfortable brushes]( with Chinese authorities in the past, but this time, the stakes were much bigger - the firm eventually saw over US$60 billion wiped off its market cap. It would also hasten China’s broader efforts to reign in the growing influence of its tech giants. Just two days after the IPO, Beijing’s internet watchdog would force Didi’s main apps off stores in China and ban the company from registering new users indefinitely. And this was just the beginning of Didi’s woes. In a bid to appease Chinese authorities, the company planned to delist from the New York Stock Exchange and return to public markets in Hong Kong. However, even its relisting efforts later hit a stumbling block, leaving the firm’s fate in limbo for the near future. In March, Didi [suspended]( its planned Hong Kong listing after the Cyberspace Administration of China informed executives that their proposals to prevent security and data leaks had fallen short of requirements. Compounding Didi’s misery, senior Beijing officials have also pushed back against the internet regulator's proposed punishments for the firm, saying they were too [lenient](. Didi’s trouble with regulation has been primarily on the domestic front so far, but that changed last week when the company confirmed the US Securities Exchange Commission was also [investigating]( its IPO. It’s hard to imagine you'd end up in the bad books of the world’s two largest economies, but that’s where the once-high-flying Didi finds itself. It seems inevitable that its shareholders will vote to delist the firm from the NYSE on May 23 in the hopes of bringing an end to the company's tumultuous run in public markets. However, with its future uncertain and global markets tumbling, Didi will perhaps find some reprieve in private markets, where its stock was a prized possession not so long ago. -- Shravanth 4 STOCKS TO WATCH Hot stocks, earnings reports, restructuring, activist investor pressure, and more. We feature the stocks that are likely to make big moves during the week. 🇸🇬 Grab (GRAB, NDAQ) It’s no secret that the super app is after a large slice of Southeast Asia’s fintech space. Its ambitions were supercharged last week when GSX Bank, the digital banking joint venture of Grab and Singtel (Z74, SGX), was earmarked for conventional digital banking licenses by Bank Negara Malaysia. In [this premium story]( my colleague, Emmanuel, analyzes the five chosen consortia expected to meet the Malaysian central bank’s strict guidelines within the next two years. 🇨🇳 JD.com (JD, NDAQ) The ecommerce giant [issued]( its first dividend last week since debuting on public markets in 2014. JD.com approved a special cash dividend payout totaling US$2 billion. The firm’s founder, Richard Liu Qiangdong, is expected to receive US$272.8 million in cash as a result of the announced dividend. 🇰🇷 Shinhan Financial Group (055550, KRX) The financial services major will look to boost its digital services in Vietnam after it [bought 10%]( of local ecommerce player Tiki for an undisclosed amount. The South Korean group is now Tiki’s third-largest shareholder. Shinhan is reportedly expanding outside the financial services space and is looking to leverage Tiki's reach in Vietnam as the latter plans to go public by 2025. 🇹🇼 Silicon Motion Technology Corp (SIMO, NDAQ) The maker of NAND flash controllers is being [bought]( by chipmaker MaxLinear (MXL, NDAQ) for nearly US$4 billion in a cash-and-stock deal. After the acquisition, the company will become one of the world’s largest fabless semiconductor suppliers. It was reported last month that Taiwan-based MediaTek Inc (2454, TPE) was interested in buying Silicon Motion. 3 MARKET WHISPERS A lot more reliable than whispers, we highlight engaging source-based reporting from reputable news outlets around the globe. 1️⃣ An Indian unicorn heads for an IPO Mamaearth, an India-based beauty and babycare brand, is [planning an IPO]( within the next 12 to 15 months. The direct-to-consumer firm is considering a public listing by mid-2023 - sooner than its previous plan to list within two to three years plan. Mamaearth will be hoping for a better track record than some of India's recently listed unicorns such as Zomato (ZOMT, NSE) and Paytm (PAYT, NSE), which have seen their valuations fall by more than half. 2️⃣ US sanctions piling up Hangzhou Hikvision Digital Technology (002415, SHE) could be the latest Chinese firm to [face US sanctions](. The video surveillance company has been accused of enabling human-rights abuses by supplying the Chinese government with cameras used in the repression of Uyghur Muslims. The potential US sanctions would prohibit American companies or citizens from trading or conducting financial transactions with such companies and would freeze assets held by blacklisted firms in the US, the Financial Times reported. 3️⃣ Going against the grain If you’re looking for generous valuations, it's unlikely you’ll find it in today’s stock market. That seems to be the consensus among the swathes of startups pulling the plug, delaying, or slashing the size of their market debuts. Oyo, Pharmeasy, and Snapdeal are some Indian startups that may not hit the public markets this calendar year due to high volatility. But Delhivery is aiming for a US$5 billion valuation for its listing. In this [insightful interview]( Sahil Barua, co-founder and CEO of Delhivery, shares his belief in long-term valuations as his fim gears up to launch its IPO on May 11. 2 EYE-POPPING FACTS Tech in Asia scours the internet to bring you the head-turning numbers from the world of business. - [US$4 billion]( - That's how much global investment titan KKR (KKR, NYSE) is looking to raise for its third tech fund, Next Generation Technology Growth Fund III. Notably, it will raise a part of the funds by tokenizing a portion of the fund on ADDX, a Singapore-based private-market platform. Through ADDX, investors with at least US$20,000 to invest can access the KKR fund. - [60%]( – That's how much Prenetics Group's revenue grew in the first quarter, ahead of its planned listing on the Nasdaq on May 18. The company, which is known for its Covid-19 testing services, said it made US$92 million in revenue in the first three months of 2022 as demand for testing grew amid a resurgence of the virus. THE 1 YOU DIDN'T SEE COMING We spotlight the unusual, not-your-everyday kind of story that has got everyone talking and social media buzzing over the past week. Honestly, why aren’t we tired of this saga yet? Yes, it's about Elon Musk and Twitter (TWTR, NYSE) once again. An agreement was reached more than a fortnight ago for the world’s richest man to buy the microblogging platform. And yet, the finer details of this unexpected marriage continue to bombard the pages of financial dailies and discussions on social media. There is an expectation that there will invariably be more twists in the tale, with Musk being Musk. However, the Tesla (TSLA, NDAQ) CEO took a giant leap forward last week by securing some funds to help complete his acquisition. Musk [bagged nearly US$7.1 billion]( from high-profile investors, including Oracle (ORCL, NDAQ) founder Lawrence Ellison, as well as Binance and Sequoia Capital, to back his bid to buy Twitter for US$44 billion. Furthermore, it took less than three weeks for Saudi Arabia’s Prince Alwaleed bin Talal Al Saud [to flip]( from being an angry investor to a key supporter of Musk’s $44 billion takeover of Twitter. The Saudi royal, who is one of the richest men in the Middle-eastern country, called Musk an "excellent leader" for Twitter, as he agreed to roll his US$1.89 billion stake into the deal rather than cashing out. That’s it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. 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