- According to a Businesshala report, Chinese regulators have asked Didi to come up with a plan to delist it from the New York Stock Exchange in the US.
- Shares of SoftBank in Japan were down 4.77% at the time of lunch break. SoftBank’s Vision Fund owned over 20% of Didi following its US listing.
- The report said that Didi could either go for privatization or get listed in Hong Kong after being listed in the US.
GUANGZHOU, China – Shares of SoftBank extended their losses on Friday after Businesshala reported that Chinese regulators have asked Didi executives to work out a plan to delist them from the US.
Shares of SoftBank in Japan were down 4.77% at the time of lunch break. SoftBank’s Vision Fund owned over 20% of Didi following its US listing.
of Businesshala The report said regulators want Chinese ride-hailing giant Didi to be removed from the New York Stock Exchange due to concerns about the leak of sensitive data. The news agency cited people familiar with the matter who asked not to be identified due to the sensitivity of the matter.
The report said that China’s cyberspace administration has asked Didi to prepare the details for the delisting, which will be subject to government approval.
The report said that Didi could either go for privatization or get listed in Hong Kong after being listed in the US.
According to Businesshala, the privatization will take place at an IPO price of $14 per share if the company is listed, while the Hong Kong float will be at a discount to Didi’s shares in the US.
Didi declined to comment on the report.
The state-directed delisting would be an unprecedented move, but highlights Beijing’s continued pressure to rule the tech giants and place them under strict regulation. Sister in particular is a special case. Soon after its IPO in the US in June, regulators opened a cybersecurity review into the company.
Elder sister Allegedly It attracted the ire of regulators by going ahead with the IPO without resolving the outstanding cyber security issues that were to be resolved by the authorities. Didi is the largest ride-hailing app in China and keeps a lot of data on travel routes and users.