The Didi Global IPO situation will serve as a reminder of the ever present need for continuing “due diligence” through the public offering process. More than fifty years ago, securities lawyers were reminded of the importance of the diligence process in connection with public offerings by the criticism of them in the Bar-Chris case.
Even after the formal due diligence is concluded, every reasonable effort must be made in connection with bring downs. Third party verification, to the extent possible, is always worthwhile.
The regulators in Beijing were under the impression Didi would pause its initial public offering while it addressed data-security concerns, according to people familiar with the company’s conversations with regulators. In New York, Didi offered assurances that Beijing had given it the green light, said people close to the listing process.