DiDi drops 21% as Chinese ride-hail giant plans to hold vote on potential delisting of US shares
DiDi drops 21% as Chinese ride-hail giant plans to hold vote on potential delisting of US shares

DiDi drops 21% as Chinese ride-hail giant plans to hold vote on potential delisting of US shares

  • Didi Global fell on Monday as the ride-hail app scheduled a vote to delist NYSE-listed stocks.
  • The vote comes after Didi’s security practices were investigated in China last year.

Shares of DiDi Global tumbled on Monday as the China-based ride-hail app moved closer to a potential delisting of its stock in the U.S. by casting a vote on the matter for shareholders.

Shares listed on the New York Stock Exchange fell as much as 21% in pre-market trading to $ 1.93, the lowest price since March 15th. The stock later reduced its loss to 18%.

In a statement SundayDiDi said it would hold a vote on the delisting of its U.S. depository shares from the New York Stock Exchange in Beijing on May 23.

“The company is fully cooperating with the cyber security review in China,” DiDi said, referring to a cyber security investigation of the company launched by the Chinese government last year.

The shareholder vote will take place after the company said in December it would delist from the NYSE and move its shares to the Hong Kong Stock Exchange. DiDi came under intense pressure from Chinese authorities after launching shares in the US in June despite the Chinese Cyberspace Administration urging the company to postpone its listed offering while its data practices were under review, Reuters had reported.

Didi in March stopped plans to go to the Hong Kong Stock Exchange after Didi failed to appease Chinese regulators who conducted the cybersecurity investigation. The government had demanded DiDi overhaul of systems due to concerns about leaks of user data, Bloomberg reported.

DiDi is taking a step towards a “voluntary delisting”, the China Securities Regulatory Commission said Sunday according to a translated statement.

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