Update: Who could have seen this coming?
DIDI just crashed back to within pennies of its IPO price...
We appear to have where the underwriters were waiting.
* * *
Didi raised about $4.4 billion in its initial public offering Tuesday after pricing shares at $14 apiece, making it the biggest IPO haul for a Chinese company since Alibaba Group Holding Ltd. listed shares in 2014, according to Dealogic.
BUT... Having been proudly displayed by CNBC et al. as indicative of investor demand for recovery stocks and "money on the sidelines" being put to work, DIDI is puking after its open this morning...
Didi's American depositary shares opened trading at $16.65 on Wednesday afternoon, 19% above their $14 IPO price. At the open, Didi's market capitalization was roughly $80 billion.
It's not worth that now (yes, that's a $14 handle!)...
Here's WSJ crowing over the earlier success:
"The gains bucked the trend of poor performance that has plagued several other Chinese companies' IPOs in recent weeks, signaling that investors are willing to overlook some risks for the promise of high growth, and that Didi and its underwriters were wise in conservatively pricing the deal."
Not bucking that trend so much anymore.