Biz / Tech

Didi delists from NYSE as Chinese authorities probe operations

Ding Yining
Almost all shareholders voted to delist after Chinese authorities launched an inquiry into the company.
Ding Yining
Didi delists from NYSE as Chinese authorities probe operations
Ti Gong

Didi will delist from the New York Stock Exchange after Chinese authorities launched a probe into its operations.

The ride-hailing service platform, which acquired smaller rival Kuaidi to become a dominant player in the Chinese market in 2015, said it planned to file its delisting notification with the SEC on or after June 2 and share trading would stop 10 days later.

About 96 percent of shareholders voted for delisting in an extraordinary meeting on Monday.

Didi completed its listing with an initial public offering price of US$14 less than a year ago and it traded at US$1.44 on Monday.

The Cyberspace Administration of China opened a probe days after the IPO into Didi's data infrastructure and suspended new user registration and pulled down some of its popular services from smartphone application stores.

Didi said in its filing earlier this month that it would not seek secondary listing before the delisting is completed to cooperate with the cybersecurity review.

Eleven Chinese tech, media and telecommunications companies have completed secondary listing in Hong Kong since 2018.

"Chinese tech companies will pay more attention to domestic listing channels as market volatility and the macroeconomic environment hit stock valuations of the overseas listings despite their stable business growth," noted Paul Cheung, EY China's TMT Consulting Leader.

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