What happened
Shares of DiDi Global (DIDI 3.96%) fell 22% on Friday after the Chinese ride-hailing leader said it was preparing to de-list its shares from the New York Stock Exchange.
So what
DiDi has had a rough go in the public markets. Its shares have shed more than half their value since the company's initial public offering (IPO) in June.
Things were rocky from the start. In early July, The Wall Street Journal reported that Chinese regulators had wanted DiDi to postpone its IPO. China's cybersecurity agency reportedly indicated that DiDi should have conducted a more intensive review of its network to ensure proper safeguards were in place to protect Chinese citizens' personal information.
DiDi, however, decided to press forward with its IPO. Regulators responded by barring the company from signing up new users in China.
DiDi's stock price plunged on Friday. Image source: Getty Images.
The situation has apparently deteriorated to the point where DiDi is now being pressured to de-list its shares from the U.S. financial markets. The news drove U.S. investors, many of whom were already frustrated by DiDi's seemingly self-induced troubles, to sell their shares today.
Now what
DiDi said it would pursue a listing for its shares on the Hong Kong Stock Exchange. It will also ensure that its American depositary shares (ADS) are convertible into new shares that are tradable on "another internationally recognized stock exchange." Investors should expect to receive notification of an upcoming stockholders meeting, during which time they will be able to vote on the selection of the new exchange listing.
