Shipping and transportation giant Didi delists from New York Stock Exchange | Business and Economy

The move comes after the company ran afoul of Chinese authorities by going ahead with a $4.4 billion initial public offering in the United States in July.

Transportation giant Didi Global said Friday it will be delisted from the New York Stock Exchange and will continue to be listed in Hong Kong, subject to pressure from Chinese data security regulators.

to run Violation of the Chinese authorities By going ahead with its $4.4 billion US initial public offering in July despite being asked to put it on hold while it conducts a review of its data practices.

Then, the powerful China Cyberspace Administration (CAC) ordered app stores to remove 25 mobile apps operated by Didi and also asked the company to stop registering new users, citing national security and public interest. Didi is still under investigation.

“After careful research, the company will immediately begin de-listing from the New York Stock Exchange and will begin preparations for listing in Hong Kong,” Didi said on her Twitter-like account on Weibo.

It later said in a separate English-language statement that its board had approved the move.

“The company will organize a meeting of shareholders to vote on the aforementioned matter at an appropriate time in the future, by following the necessary procedures,” it added.

Diddy debuted in New York in June [Brendan McDermid/Reuters]

Sources told Reuters that Chinese regulators pressed Didi’s top executives to plan a delisting from the New York Stock Exchange due to data security concerns.

“Didi’s plan to delist in the United States and list Hong Kong stocks I think will have a clear impact on positioning decisions for big tech stock listings in the future,” said Kenny Ng, a securities analyst at Everbright Sun Hung Kai in Hong Kong.

“At the same time, this event makes the market believe that the current industrial supervision of technology stocks in the mainland will continue, and the decline in the price of shares of technology stocks listed in Hong Kong today also reflects this factor.”

Sources told Reuters that Didi is preparing to relaunch its apps in the country by the end of the year, in anticipation of the conclusion of Beijing’s cybersecurity investigation into the company by then.

CAC did not immediately respond to a request for comment on Diddy’s plans to be delisted from New York.

Didi debuted in New York on June 30 at $14 per US deposit share, giving the company a valuation of $67.5 billion on an undiluted basis. Those shares have since fallen 44 percent to Thursday’s close, valued at $37.6 billion.

Shares in Didi investor SoftBank Group Corp tumbled more than 2 percent after the Didi announcement, also weighed down by the Southeast Asian transportation giant Grab’s downturn on its Nasdaq debut.

Vision’s SoftBank fund owns 21.5 percent of Didi, followed by Uber Technologies Inc with 12.8 percent, according to a June filing by Didi.

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Andrew Naughtie

News reporter and author at @websalespromo

https://www.websalespromotion.com