Chinese ride-hailing big Didi Global Inc. stated it might proceed with its plan to delist from the New York Stock Exchange, after securing approval from its shareholders at a Monday assembly.
The transfer will enable the corporate to maneuver ahead after an extended interval of disruption throughout which Beijing tightened its grip on the nation’s tech corporations and their troves of information. Didi had instructed shareholders it wanted to delist earlier than it could resolve a seamless cybersecurity probe in China.
Some 96% of shareholders who solid votes on the assembly favored the delisting proposal, the corporate stated. A May 11 submitting with the U.S. Securities and Exchange Commission stated that Didi’s founders Will Cheng and
Jean Liu
had indicated they meant to vote in favor on a one-vote-per-share foundation.
The firm stated in a separate announcement it had notified NYSE of its intention and deliberate to file its delisting notification with the SEC on or after June 2. Trading in its shares would cease 10 days later.
Didi’s American depositary receipts have plunged from their preliminary public providing worth of $14 lower than a yr in the past, saddling many U.S. buyers with heavy losses.
Didi shares began buying and selling on June 30, after the corporate offered $4.4 billion of inventory in an preliminary public providing. Days later, Chinese regulators launched a probe into the corporate’s information infrastructure, ordered it to droop new consumer registration and compelled a few of its fashionable apps to be taken down, which reduce into its core ride-hailing enterprise in China. The probe is ongoing.
In buying and selling on Monday, the New York-listed inventory traded at $1.53 a share, up 1.7% from its Friday shut.
In December, Didi stated it deliberate to delist its shares within the U.S. and pursue a list in Hong Kong. The firm has since stated that it must delist from the NYSE earlier than the probe will be accomplished, and that it should resolve the cybersecurity assessment earlier than it could apply for its apps to be restored in China and register new customers once more. It has additionally stated that it wouldn’t search a public itemizing elsewhere earlier than the U.S. delisting.
Didi final month stated its fourth-quarter income fell 12.7% from the identical interval a yr earlier.
Write to Shen Lu at [email protected]
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