Chinese ride hailing giant Didi has announced its decision to delist in New York just six months after a $4.4 billion market debut and shift its listing to Hong Kong.
Didi has decided to delist in New York to pursue an A-share listing in Hong Kong following «careful research», according to a statement from the ride hailing giant’s social media account.
The firm noted that its U.S. shares would be «convertible into freely tradable shares of the company on another internationally recognized stock exchange» and that its board had approved plans to pursue a listing in Hong Kong, according to a separate statement on Didi’s website.
Regulatory Pressure
This follows reports last month that the Cyberspace Administration of China (CAC) had asked Didi’s management to formulate a plan to delist from the New York Stock Exchange, claiming that there were concerns about data security.
Didi has experienced unprecedented regulatory pressure following its IPO in June last year including a cybersecurity review by the CAC which led to a suspension of the registration of new users in China alongside the removal of 25 of its apps from the local app store in the same month.
