Salem Radio Network News Wednesday, January 26, 2022

Business

Didi Global to start work on delisting from New York, to pursue listing in Hong Kong

SHANGHAI (Reuters) – Chinese ride-hailing giant Didi Global will delist from the New York stock exchange and pursue a listing in Hong Kong, it said on Friday, after it ran afoul of Chinese regulators by pushing ahead with its $4.4 billion U.S. IPO in July.

The company made the announcement first on its Twitter-like Weibo account.

“Following careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong,” it said.

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

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

Reuters reported last week citing sources that Chinese regulators had pressed Didi’s top executives to devise a plan to delist from the New York Stock Exchange due to concerns about data security.

The company pressed ahead with its New York listing despite a regulator urging it to put it on hold while a cybersecurity review of its data practices was conducted, sources have told Reuters.

Didi is also preparing to relaunch its apps in the country by the end of the year in anticipation that Beijing’s cybersecurity investigation into the company would be wrapped up by then, Reuters reported last month. (This story corrects last paragraph to say Reuters reported last month on Didi preparing for relaunch of its apps, not this month)

(Reporting by Brenda Goh; Editing by Himani Sarkar and Edwina Gibbs)

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