Didi surges on report it's weighing going private amid regulatory pressure

• Didi Global shares jumped Thursday after The Wall Street Journal reported the ride-hailing app was considering going private.
• Didi said in a statement the report was "not true."
• Didi shares, which have been hurt by a Chinese data-security probe, were still trading below the IPO price of $14.

Didi stock soared Thursday following a Wall Street Journal report the ride-hailing company was considering going private to resolve problems that emerged after China launched a data-security investigation shortly after its recent US stock listing.

Didi denied the report, causing shares to pare some gains.

The article, citing unnamed sources, said Didi was weighing a go-private move to placate authorities in China and to compensate investors for losses incurred since its IPO priced at $14 a share launched on June 30. The shares had reached $18 then began falling after the Cyberspace Administration of China on July 2 started a data-security review of the company. The report said Didi has been in talks with bankers, regulators, and key investors about how to resolve issues surrounding the listing.

"DiDi Global … noted a Wall Street Journal article published today saying the company is considering going private. The company affirms that the above information is not true," Didi said in a statement. "The company is fully cooperating with the relevant government authorities in China in the cybersecurity review of the company."

NYSE-listed shares of Didi jumped as much as 45% to $12.88 in premarket trading following the WSJ report, then pared the gain to 17% after Didi denied the report.

A take-private deal involving a tender offer for Didi's publicly traded shares was one of the preliminary options under consideration, the report said.

After launching the data-security review, the Cyberspace Administration of China told app-stores to take down Didi's mobile app then later ordered the removal of 25 more aps run by Didi. Chinese regulators have also said they will tighten control of domestic companies listed overseas.

Didi raised $4.4 billion from its IPO of American depositary shares.

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