DiDi Shareholders Approve Delisting From the New York Stock Exchange

DiDi Shareholders Approve Delisting From the New York Stock Exchange
Photo: Unsplash.com 24.05.2022 275

In an extraordinary general meeting (EGM) held on Monday, 96.26% of shareholders who were present and voting, voted in favor of delisting Didi's American Depositary Shares from the NYSE.

The delisting is "in order to better cooperate with the cybersecurity review and rectification measures," said DiDi in a separate release.

The shareholders' decision was largely expected as the company explained to them that the delisting in New York was necessary to secure necessary approvals from China’s regulators to resume DiDi’s normal business operations. 

The company says that its shares will not be listed on any other stock exchange before the delisting is completed.

In the summer of 2021, Chinese regulators launched an investigation against DiDi after its US$4.4 billion initial public offering (IPO) on the NYSE.

Days after it went ahead, the country's powerful cyberspace watchdog ordered app stores to remove 25 mobile apps operated by DiDi and told the company to stop registering new users, citing national security and the public interest.

Didi’s total ride orders reached 9.5 billion last year. The firm recorded more than 26 million rides each day.

China’s regulatory crackdown, however, has weakened Didi’s leading position in thet ride-hailing market. The company’s order volume fell 29 per cent between last June and March this year, according to a calculation of monthly growth rate figures published by China’s Ministry of Transport.

Source: CGTN, SCMP

digital markets  China 

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