Retail investors join Didi to sell Reuters after news of delisting

© Reuters. File photo: On December 3, 2021, a screen on the New York Stock Exchange (NYSE) in New York City, the United States, showed transaction information for ride-hailing giant Didi Global. REUTERS/Brendan McDermid

NEW YORK (Reuters)-Retail investors have always been one of the people selling Didi Global shares. Didi Global shares plummeted after the ride-hailing company revealed its plans to withdraw from the New York Stock Exchange.

According to data from Vanda (NASDAQ:) Research, retail investors sold a net $3.37 million worth of Didi shares on Friday. After the company said it planned to seek a listing in Hong Kong, the stock fell 22.2% that day. This was a stunning reversal as it succumbed to Chinese regulators that were angry about its US IPO.

Wanda’s data shows that retail investors also sold Didi’s shares on Wednesday and Thursday last week, after buying Didi’s shares in the previous month.

“I believe most investors don’t fully understand how the delisting process works – or at least they don’t want to know,” Wanda Research analyst Giacomo Pierantoni said in an email . “Therefore, they are more willing to get rid of inventory.”

Didi’s share price rebounded on Monday, rising about 8% to US$6.56 in midday and early trading, but it still fell more than 50% from the June IPO price.

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