Didi Global plans to delist from New York to seek listing in Hong Kong Reuters

© Reuters. File picture: The logo of the Chinese ride-hailing service Didi was seen at the headquarters in Beijing, China on July 5, 2021. REUTERS/Tingshu Wang

Shanghai/Hong Kong (Reuters)-Ride-hailing giant Didi Global said on Friday that it would delist from the New York Stock Exchange and seek a Hong Kong listing, succumbing to Chinese regulators’ concerns about data security.

Although it was asked to shelve it during the review of its data practices, it clashed with the Chinese authorities in July to advance its $4.4 billion US IPO.

The powerful National Cyberspace Administration of China quickly ordered the app store to remove 25 mobile apps operated by Didi on the grounds of national security and public interest, and asked Didi to stop registering new users. Didi is still investigating.

“After careful study, the company will immediately start delisting on the New York Stock Exchange and begin preparing to list in Hong Kong,” Didi said on its Twitter-like Weibo (Nasdaq:) account.

It later stated in another English statement that its board of directors had approved the move.

“The company will organize a general meeting of shareholders to vote on the above matters at an appropriate time in the future and in accordance with necessary procedures,” it said.

Sources told Reuters that Chinese regulators urged Didi executives to make plans https://www.reuters.com/world/china/china-asks-didi-delist-us-security-fears-bloomberg-news-2021- 11 -26 Delisted from the New York Stock Exchange due to concerns about data security.

Kenny Ng, securities strategist at Everbright Sun Hung Kai in Hong Kong, said: “Didi’s plans to delist in the United States and go public on Hong Kong stocks, I think will have a significant impact on the site selection decisions of large technology stocks in the future.”

“At the same time, this incident has convinced the market that the current mainland China’s industry supervision of technology stocks will continue, and the decline in the stock prices of technology stocks listed in Hong Kong today also reflects this factor.”

A source told Reuters that Didi is preparing to restart https://www.reuters.com/technology/exclusive-didi-prepares-relaunch-apps-china-anticipates-probe-will-end-soon-2021-11- 11 It is expected that by the end of the year, Beijing’s cyber security investigation of the company will end.

CAC did not immediately respond to a request for comment on Didi’s plan to delist from New York.

Didi made its debut in New York on June 30, with an American depositary share of US$14 per share, which gives the company a valuation of US$67.5 billion on an undiluted basis. Since then, as of Thursday’s close, these shares have fallen by 44% and are valued at US$37.6 billion.

After Didi announced the news, the share price of Didi’s investor SoftBank Group fell by more than 2%, which was also hit by the plunge of Southeast Asian ride-hailing giant Grab on the first day of its NASDAQ listing.

According to a document submitted by Didi in June this year, SoftBank’s Vision Fund owns 21.5% of Didi’s shares, followed by Uber Technology (NYSE:) Inc with 12.8%.

Disclaimer: Converged Media I would like to remind you that the data contained in this website may not be real-time or accurate. All CFDs (stocks, indices, futures) and foreign exchange prices are not provided by exchanges, but by market makers, so prices may be inaccurate and may be different from actual market prices, which means that prices are indicative and not Suitable for trading purposes. Therefore, Fusion Media is not responsible for any transaction losses that you may suffer as a result of using this data.

Converged Media Fusion Media or anyone associated with Fusion Media shall not be liable for any loss or damage caused by reliance on the data, quotations, charts, and buy/sell signals contained in this website. Please fully understand the risks and costs associated with financial market transactions. This is one of the most risky forms of investment.

Source link

Leave a Reply

Your email address will not be published.