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Didi Global plans to delist from New York, seeks listing in Hong Kong

Signs of Chinese ride-hailing service Didi are seen at its headquarters in Beijing,
FILE PHOTO: A sign of Chinese ride-hailing service Didi is seen at its headquarters in Beijing, China July 5, 2021. REUTERS / Tingshu Wang

December 3, 2021

SHANGHAI/HONG KONG (Reuters) – Group giant Didi Global said on Friday that it would delist from the New York Stock Exchange and pursue a listing in Hong Kong, in the face of pressure from regulators Chinese regulators are concerned about data security.

It angered Chinese authorities by pushing for a $4.4 billion US IPO in July despite being asked to pause while it conducted a review of its data practices. it.

The Cyberspace Administration of China (CAC) then quickly ordered app stores to remove 25 mobile apps operated by Didi, and asked the company to stop registering new users. , for reasons of national security and public interest. Didi is still under investigation.

“After thorough research, the company will immediately begin delisting on the New York Stock Exchange and begin preparations for listing in Hong Kong,” Didi said on its Twitter-like Weibo page. .

It later said in a separate statement in English that its board approved the move.

The company will hold a general meeting of shareholders to vote on the above issue at an appropriate time in the future, according to the necessary procedures.

Sources have told Reuters that Chinese regulators have been pressing Didi’s top executives to come up with a plan https://www.reuters.com/world/china/china-asks-didi -delist-us-security-fears-bloomberg-news-2021-11 -26 delists from the New York Stock Exchange due to data security concerns.

Kenny Ng, equity strategist at Everbright Sun Hung Kai in Hong Kong, said: “Didi’s delisting plan in the US, and the listing of Hong Kong shares, I believe will have a clear impact on decide on the future listing location of big tech stocks.

“At the same time, this event leads the market to believe that the current industry scrutiny of mainland tech stocks will continue, and the share price decline of Hong Kong-listed tech stocks today. now also reflect this factor”.

Sources have told Reuters that Didi is preparing to relaunch https://www.reuters.com/technology/exclusive-didi-prepares-relaunch-apps-china-anticipates-probe-will-end-soon-2021 Its -11-11 applied in the country at the end of the year in anticipation that Beijing’s cybersecurity investigation into the company would be concluded by then.

The CAC did not immediately respond to a request for comment on Didi’s plans to remove the listing from New York.

Didi made its debut in New York on June 30 at $14 per US Depository Share, giving the company a valuation of $67.5 billion on an undiluted basis. Those shares were down 44% through Thursday’s close, valuing it at $37.6 billion.

Shares of Didi investor SoftBank Group Corp fell more than 2% following Didi’s announcement, also affected by the decline of Southeast Asian ride-hailing giant Grab on its Nasdaq debut.

SoftBank’s Vision Fund owns a 21.5% stake in Didi, followed by Uber Technologies Inc with 12.8%, according to a June filing by Didi.

(Reporting by Brenda Goh, Julie Zhu, Alun John and Sayantani Ghosh; Writing by Sumeet Chatterjee; Editing by Edwina Gibbs)

https://www.oann.com/didi-global-to-start-work-on-delisting-from-new-york-to-pursue-listing-in-hong-kong/?utm_source=rss&utm_medium=rss&utm_campaign=didi-global-to-start-work-on-delisting-from-new-york-to-pursue-listing-in-hong-kong Didi Global plans to delist from New York, seeks listing in Hong Kong

Bobby Allyn

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