July 3, 2022
  • July 3, 2022

Didi’s disastrous foray into Wall Street is over

By on May 23, 2022 0
Just days after Didi’s Wall Street debut last summer, Chinese authorities prohibits the service app stores nationwide and launched a cybersecurity investigation into the company. The investigation made the company a poster child for Beijing’s crackdown on tech companies and wiped tens of billions of dollars from its market capitalization.
Didi’s troubles came to a head in December when he announced he would quit the US stock market, without giving a reason. The move was widely seen as an attempt to appease Chinese officials who were unhappy with how it became public abroad.
In a Filing with the SEC earlier this month, Didi said he would not be able to resume normal business operations without completing the cybersecurity review required by Chinese authorities. He said he came to the conclusion that he would not be able to complete this review if he continued to trade on the NYSE.
Have I got (HAVE I GOT) held an extraordinary general meeting on Monday evening in Beijing, where investors including Soft Bank (SFTBF) and Tencent (TCEHY) voted overwhelmingly in favor of withdrawing from Wall Street.

The company said in a statement after the vote that it had notified the New York Stock Exchange of the decision and expected its shares to be delisted in June.

The Chinese company should then be able to move forward with a project to register its shares in Hong Kong, which he announcement at the end of last year. It has previously said it will not be listed on any other market until its delisting from the NYSE is complete.

While Didi called the decision “voluntary,” the company “implicitly indicates that the delisting is driven by ongoing cybersecurity review,” according to Bernstein analyst Cherry Leung.

Didi is also under scrutiny in the US: earlier this month he revealed he was being investigated by the Securities and Exchange Commission for the failed IPO. .

Shares of the company have crashed nearly 70% so far this year.

“The company is fully cooperating with China’s cybersecurity review,” it said in a statement in April.