Didi to leave Wall St listing for Hong Kong Stock Exchange
Ride hailing app Didi announced it was preparing to leave the New York Stock Exchange in a small note released on Friday.
“[Didi Global] today announced that its board of directors has authorized and supports the company to undertake the necessary procedures and file the relevant application(s) for the delisting of the company’s ADSs [American Depositary Shares] from the New York Stock Exchange, while ensuring that ADSs will be convertible into freely tradable shares of the Company on another internationally recognized stock exchange at the election of ADS holders,” it said.
“The company will organize a shareholders meeting to vote on the above matter at an appropriate time in the future, following necessary procedures.
“The board has also authorized the company to pursue a listing of its class A ordinary shares on the main board of the Hong Kong Stock Exchange.”
Didi announced its IPO on Wall St at the end of June, and opened trading at $14. It closed on Friday at $6.07 after opening the day at $7.56 per share.
In July, Didi found its app removed from app stores in China following a government edict.
The Cyberspace Administration of China said at the time that Didi breached regulations governing the collection and use of personal data. It instructed the removal of the app from local app stores and Didi to rectify “existing problems” and “effectively protect” users’ personal data. The government agency did not disclose any details on what these issues were and how they violated local laws.
The move hit 25 apps operated by Didi in China.
“The company expects that the app takedown may have an adverse impact on its revenue in China,” it said.
Didi also confirmed a week later the authorities in China were conducting a cybersecurity review, and denied reports the company was going private.