Didi Global has notified the New York Stock Exchange of its plans to delist its American depositary shares.
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The Chinese ride-hailing giant will file a Form 25 with the US Securities and Exchange Commission on or after June 2 in order to delist the shares, which is expected to occur 10 days after the effectiveness of the Form 25.
The notification comes after the move was officially approved by Didi shareholders during the company’s extraordinary general meeting. According to the company, 781,060,684 shares voted in favor of the delisting, while 30,374,766 shares voted against.
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Didi, whose biggest shareholders include SoftBank, Tencent Holdings and Uber, raised $4.4 billion during its initial public offering in June 2021.
Days after its IPO, the Cyberspace Administration of China launched a cybersecurity review that required the company to take down 26 apps and suspend new user registration in China. The regulator said that the company’s apps collected personal information that violated the Chinese government’s data privacy and national security laws.
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Didi, which first outlined its delisting plans in December, added at the time that it would eventually aim to shift its listing to the Hong Kong Stock Exchange.
The company said in a May 11 filing with the SEC that it has “fully cooperated with the PRC government authorities relating to the review and rectification measures.” However, it said it was uncertain when normal operations would resume and whether its rectification measures alone would satisfy the requirements of the relevant authorities.
Didi emphasized in the filing that not delisting would have a “material adverse impact on the Company’s ability to conduct normal operations, restore its businesses and serve the best interests of its shareholders.” However, the NYSE delisting does not guarantee that Didi will successfully have its shares listed in Hong Kong.
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In addition to scrutiny from Beijing, Didi revealed in its 2021 annual report that the SEC contacted the company with inquiries in relation to its IPO.
“We are cooperating with the investigation, subject to strict compliance with applicable PRC laws and regulations,” the company added. “We cannot predict the timing, outcome or consequences of such an investigation.”
Shares of Didi are down approximately 71% year to date.