Business

Didi says it will continue with NYSE postponement


Less than a year later

Global Didi Inc.

DIDI -4.00%

Listing its shares in the US, the Chinese ride-hailing company said its shareholders approved a plan to delist its shares on the New York Stock Exchange, ending a regulatory roller coaster ride that Its market value plummeted.

The move will allow the company to move forward after being caught up in a campaign to tighten the grip of Chinese tech giants and their data warehouses. Didi told shareholders it needs to be deleted before it can settle a cybersecurity investigation in China.

About 96% of shareholders voted at Monday’s meeting support the delisting proposal, the company said. A May 11 filing with the US Securities and Exchange Commission said Didi founders Will Cheng and Jean Liu said they intend to vote in favor on a one-vote-per-share basis. .

The company said in a separate announcement that it has notified the NYSE of its intentions and intends to file a delisting notice with the SEC on or after June 2. Trading in its shares will cease 10. day after that.

Didi on Monday referred to its May filing, in which it said it would not apply to list its shares on another exchange until a cybersecurity review and any which “corrective action” is completed.

It said investors could trade shares over the counter, though it said whether such a market would develop was beyond the company’s control and warned that investors could be subject to fraud. stuck with stocks with “no viable way to recoup any substantial portion” of their investment.

Didi’s U.S. deposits have fallen from its initial public offering price of $14 less than a year ago, leaving many U.S. investors with heavy losses.

Didi shares began trading on June 30, after the company sold $4.4 billion of shares in an IPO. Days later, Chinese regulators launch a poll into the company’s data infrastructure, halting new user registrations and forcing the removal of some of their popular apps, which cut off their core ride-hailing business. in China. The survey is still ongoing.

In trading on Monday, the New York-listed ADR closed at $1.44 per share, down 4% from Friday.

In December, Didi said it plans to delist its shares in the US and pursue a listing in Hong Kong. Since then, the company said it had to resolve a cybersecurity review before it could apply to restore its apps in China and re-register new users.

Didi last month said its fourth-quarter revenue fell 12.7% year-over-year.

Didi’s challenge comes amid a protracted dispute between Washington and Beijing over auditing standards. China believes that some company information is too sensitive to national security to fall into foreign hands. For companies like Didi, data includes traffic flows or geographic information, may fall into this category.

Meanwhile, the SEC requires companies to hand over their audit work papers — which may contain raw data, including user information and communications between companies and government agencies — to audit. U.S. regulatory investigation for three years in a row, threatening to remove companies from American exchanges if they don’t ‘t.

In May, the SEC said that more than 100 Chinese companies, including Didi, had been identified as potentially delisted from US exchanges, arguing that their audit papers did not meet the requirements. American audit standards.

China’s securities regulator said Didi’s decision to withdraw from the US market was an independent decision made by the company and had nothing to do with other US-listed Chinese stocks. The China Securities Regulatory Commission in April said Didi’s decision was unrelated to discussions between the two countries about audit requirements.

Write letter for Shen Lu at [email protected]

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Appears on May 24, 2022, print edition as ‘Didi prepares to leave NYSE a year after IPO.’



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