Didi’s American depositary receipts have plunged from their initial public offering price.
Photo:
BRENDAN MCDERMID/REUTERS
Chinese ride-hailing giant Didi Global Inc. said it would proceed with its plan to delist from the New York Stock Exchange, after securing approval from its shareholders at a Monday meeting.
The move will allow the company to move forward after a long period of disruption during which Beijing tightened its grip on the country’s tech companies and their troves of data. Didi had told shareholders it needed to delist before it can resolve a continuing cybersecurity probe in China.
Some 96% of shareholders who cast votes at the meeting favored the delisting proposal, the company said. A May 11 filing with the U.S. Securities and Exchange Commission said that Didi’s founders Will Cheng and
Jean Liu
had indicated they intended to vote in favor on a one-vote-per-share basis.
The company said in a separate announcement it had notified NYSE of its intention and planned to file its delisting notification with the SEC on or after June 2. Trading in its shares would stop 10 days later.
Didi’s American depositary receipts have plunged from their initial public offering price of $14 less than a year ago, saddling many U.S. investors with heavy losses.
Didi shares started trading on June 30, after the company sold $4.4 billion of stock in an initial public offering. Days later, Chinese regulators launched a probe into the company’s data infrastructure, ordered it to suspend new user registration and forced some of its popular apps to be taken down, which cut into its core ride-hailing business in China. The probe is ongoing.
In trading on Monday, the New York-listed stock traded at $1.53 a share, up 1.7% from its Friday close.
In December, Didi said it planned to delist its shares in the U.S. and pursue a listing in Hong Kong. The company has since said that it needs to delist from the NYSE before the probe can be completed, and that it must resolve the cybersecurity review before it can apply for its apps to be restored in China and register new users again. It has also said that it wouldn’t seek a public listing elsewhere before the U.S. delisting.
Didi last month said its fourth-quarter revenue fell 12.7% from the same period a year earlier.
Write to Shen Lu at [email protected]
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