By Dhirendra Tripathi
Investing.com – ADRs of Didi Global (NYSE:DIDI) looked like extending the last session’s losses on Monday too as market players shun the ride-hailing company while it plans its next step in the NYSE delisting process.
The ADRs traded 6% weaker in the premarket. They had closed 22% lower Friday, jolted by the firm’s move to go off the exchange.
The company will now pursue a listing on the Hong Kong Stock Exchange, it said in a statement to the SEC on December 2.
The company’s assertion that it will ensure that ADSs are convertible into freely tradable shares on another internationally recognized stock exchange hasn’t impressed the market, given that the delisting news comes just over five months after the shares went public on June 30.
According to a Reuters report last week, listing in Hong Kong may prove complicated. Didi aims to complete a dual primary listing in Hong Kong in three months, too tight a deadline for a company with a history of compliance problems, Reuters said. Only 20%-30% of Didi's core ride-hailing business in China is fully compliant with regulations, the agency reported.
The company is also under pressure from Beijing to complete its U.S. delisting by June, Reuters said.