Tech

Diddy says it will delist from the New York Stock Exchange

Within 1 year

Diddy Global Ltd.

DIDI 0.67%

China’s ride-hailing service giant said it had listed its shares in the United States and its shareholders had approved plans to delist it from the New York Stock Exchange, signing a regulated jet coaster ride that plunged market value.

The move will allow the company to move forward after being involved in Beijing’s campaign to strengthen its grip on Chinese tech giants and their data pool.Diddy told shareholders Had to be delisted Before resolving China’s cyber security investigation.

About 96% of shareholders who voted at the meeting on Monday Supports delisting plan, The company said. According to a May 11 filing with the US Securities and Exchange Commission, Didi founders Will Chen and Jean Liu have indicated their intention to vote in favor of one vote per share.

In another announcement, the company announced its intentions to the New York Stock Exchange and said it would submit a delisting notice to the SEC after June 2. Trading of stocks will stop after 10 days.

Diddy mentioned on Monday a May submission stating that listing shares on another exchange would not apply until a cybersecurity review and “corrective action” were completed.

Investors have stated that they can trade stocks over-the-counter, but whether such a market develops is outside the control of the company, and investors have no practical means to regain a “significant portion” of their investment. He warned that he might stick to the stock.

Diddy’s American Depositary Receipts plunged from the initial public offering price of $ 14 less than a year ago, causing significant losses to many US investors.

Diddy shares opened trading on June 30th after the company Sold $ 4.4 Billion Shares At the IPO.A few days later, Chinese regulatory agencies Launch the probe We entered the company’s data infrastructure, ordered the suspension of new user registration, and forcibly removed some of the popular apps. This cut off a major ride-hailing service business in China. The probe is in progress.

In trading on Monday, New York-listed ADRs traded at $ 1.55 per share, up 3% from Friday’s closing price.

Diddy said in December that he plans to delist in the United States and list in Hong Kong. The company then requested that the app be restored in China and said it would need to resolve the cybersecurity review before re-registering new users.

Diddy said last month that fourth-quarter sales were down 12.7% year-on-year.

Diddy’s trials were set against the backdrop of a protracted debate between Washington and Beijing over auditing standards. China believes that some corporate information is too sensitive to national security to reach foreigners. For companies like Diddy, data such as traffic flow and geographic information, May fall into this category..

Meanwhile, the SEC requires companies to hand over audit working papers, which may contain raw data such as user information and communications between companies and government agencies, to US regulatory inspections for the third consecutive year. Threatening to remove companies from US exchanges. ‘t.

In May, the SEC said more than 100 Chinese companies, including Diddy, were identified as facing the possibility of delisting from U.S. exchanges, saying their auditing documents did not meet U.S. auditing standards. I did.

China’s securities regulator states that Diddy’s decision to withdraw from the US market is an independent decision by a company that has nothing to do with other US-listed Chinese stocks. The China Securities Regulatory Commission said in April that Diddy’s decision had nothing to do with the bilateral debate on audit requirements.

Write to Shen Lu shen.lu@wsj.com

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Diddy says it will delist from the New York Stock Exchange

Source link Diddy says it will delist from the New York Stock Exchange

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