DiDi Global Shareholders To Vote On Delisting From NYSE
After having one of the largest initial public offerings in the US markets in 2021, it appears DiDi Global (NYSE: DIDI) is already looking to reverse course. On Saturday the company announced it would be holding an extraordinary meeting of shareholders to vote on whether to delist from the New York Stock Exchange.
The meeting reportedly follows “prudent consideration” by the firms board, with the directors of the firm deciding to vote on the voluntary delisting of the equity from the exchange. Furthermore, as a result of an ongoing cybersecurity review in China of the company, the firm “will not apply for listing of its shares on any other stock exchange before completion of the delisting.”
The extraordinary meeting is set to take place on May 23, with shareholders of record as of the close of markets on April 28, 2022 eligible to vote on the matter. Shareholders with Class A or Class B shares may vote at the EGM, while holders of the American Depository Shares, or ADS’s, of the company must vote through the depository agency for the meeting.
DiDi has indicated it will “explore” whether to list its shares on another exchange. Previously, the firm indicated that it intends to list on the Hong Kong exchange, however no mention was made of that intent in Saturdays announcement. The decision to delist its shares follow the Securities and Exchange Commission ruling in December that foreign companies are liable to delisting if they don’t comply with regulator requests.
The company went public last year in a $4.4 billion initial public offering, and just days after saw its app removed from digital stores in China due to regulatory probes. At the time the company was valued at $73 billion – a value which has since fallen to just $11.63 billion today.
DiDi Global last traded at $2.46 on the NYSE.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.