Didi’s delisting is now closed – TechCrunch

Chinese hitchhiking giant Didi shareholders voted to delist the company from the NYSE. The decision is a long-awaited result of the company finding itself in trouble with the Chinese government after a hasty and then troubled debut in the US public market.

Didi went public in mid-2021 in an offer that quickly materialized. After listing in June, in early July, TechCrunch was already flagging trouble between the newly launched company and the Chinese government.

Supposedly angered by concerns over the data, the Chinese Communist Party was running a regulatory effort at the time, making Didi’s foreign IPO even less palatable. Quickly after the listing, Didi had to stop accepting new user registrations, among other regulatory penalties.

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The company’s subsequent suffering was absorbed by its new investors after the IPO. After trading at $14 a share and trading at $18.01, according to Yahoo Finance data, Didi’s stock recently reached $1.37. Today, the company is worth $1.56 a share, up 4% on news of its impending close.

By filing with the US Securities and Exchange Commission (condensed):

[Didi] announced today that the following resolution, which has been submitted for shareholder approval, was approved at the Company’s extraordinary shareholders’ meeting held today in Beijing: as an ordinary resolution, withdraw the Company’s American Depositary Shares from the New York Stock Exchange as as possible, and that, in order to better cooperate with cybersecurity review and rectification measures, the Company’s shares will not be listed on any other stock exchange prior to the completion of the Delisting.

The company is expected to be listed in Hong Kong after exiting US markets, although it is unclear when that could be.

What’s remarkable, or perhaps ironic, about the timing of Didi’s departure is that it seems to have gotten the worst of both sides. Recall that the canceled Ant IPO in late 2020 was the unofficial kick-off of a regulatory crackdown by the Chinese Communist Party on its home tech market. A wave of changes has been announced, from restrictions on video games to the abolition of the for-profit edtech market and more.

But after years of punishment, the Chinese tech market is laying off employees and value as its government seeks to smooth the waters a little. More simply, Didi went public in the United States quickly after its government began cracking down on the company and its peers, and it is now shutting down the listings at a time when the Chinese government is trying to change its mind on its tech economy.

Vice Premier Liu He made noise last week about “signs of easing [China’s] crackdown on the tech industry that has wiped out billions of dollars in value from its most prominent companies,” as CNBC put it. Those came too late for Didi. How will other companies fare?

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