Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Last Call for Cyber Monday! Save Now on Claim 60% OFF
Didi Shareholders Vote to Delist From NYSE in Wake of China's Tech Crackdown
Published May 23, 2022 08:56AM ET
Updated May 23, 2022 09:18AM ET
© Reuters Didi Shareholders Vote to Delist From NYSE in Wake of China's Tech Crackdown
(Bloomberg) -- Didi Global Inc (NYSE:DIDI) secured the blessing of shareholders to delist from the New York stock exchange, capping an 11-month ordeal that wiped out around $70 billion of its market value and turned the ride-hailing giant into a symbol of China’s tech crackdown.
It plans to file the required paperwork with the US Securities and Exchange Commission on or after June 2 in order to delist, Didi said in a statement Monday. Its shares whipsawed, falling as much as 13% in premarket trading before climbing 11% after the news.
The shareholder vote clears the way for the company to work with Chinese regulators who are demanding an overhaul of its data systems. That would allow the company to begin preparing for a Hong Kong share float, the best outcome investors have said they can hope for.
Didi’s biggest shareholders, which include Softbank (OTC:SFTBY) Group Corp. (TYO:9984), Tencent Holdings (OTC:TCEHY) Ltd. and Uber Technologies (NYSE:UBER) Inc., have watched Didi’s shares fall about 90% since going public, when it was valued around $80 billion. After delisting, the company will likely see its stock traded over the counter on the so-called pink-sheets market, home to penny stocks and other riskier businesses.
Some investors could be forced to sell because their mandates don’t allow them to hold unlisted shares. Hedge funds have already reduced their Didi holdings by 29% to about $231.9 million during the first quarter, according to a Bloomberg analysis of filings. Even those who are free of such mandates, such as SoftBank, may question whether it’s worth holding onto the shares given uncertainty over Beijing’s punishment, increased competition from smaller rivals and stalled expansion overseas.
It is still unclear what actual punishment awaits Didi, which has been in talks with the Cyberspace Administration of China about a fine and other penalties.
Didi’s shareholders, which also include the likes of Fidelity Investments and Blackrock (NYSE:BLK) Inc., have so far avoided commenting on the delisting.
©2022 Bloomberg L.P.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.