Didi Says It Has Begun New York Delisting Process

 

Didi Global will delist from the New York Stock Exchange and pursue a listing in Hong Kong, the Chinese ride-hailing giant said on Friday.

The company, which ran afoul of Chinese regulators by pushing ahead with its $4.4 billion US initial public offering in July, made the announcement first on its Weibo social media account.

“Following careful research, the company will immediately start delisting on the New York Stock Exchange and start preparations for listing in Hong Kong,” Didi said.

It later said in a separate statement that its board had approved the move. “The company will organise a shareholders’ meeting to vote on the above matter at an appropriate time in the future, following necessary procedures,” Didi said.

Chinese regulators had pressed Didi’s top executives to devise a plan to delist from New York due to concerns about data security.

The company pressed ahead with its New York listing despite a regulator urging it to put it on hold while a cybersecurity review of its data practices was conducted, sources have told Reuters.

Regulators ordered Didi’s app to be removed from download stores in July, only days after the ride-hailing giant staged the biggest Chinese listing in the US since Alibaba in 2014.

The company was also banned from signing up new users.

Didi is preparing to relaunch its apps in anticipation that Beijing’s cybersecurity investigation into the company would be wrapped up by then.

 

• Reuters, with George Russell

 

 

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