Didi shares tumble on plan to delist from the U.S.
Didi fell sharply Friday after the company announced plans to delist from the New York Stock Exchange and pursue a listing in Hong Kong instead.
Shares of the Chinese ride-hailing giant have been hammered by regulatory woes in its home country ever since its initial public offering in the U.S. earlier this year. The stock has now roughly halved from that listing price.
Didi's share price sank 17%, after having initially climbed as much as 14% in U.S. premarket trading.
The company said Friday it will delist from the New York Stock Exchange "immediately" and begin preparations for a separate listing in Hong Kong. The U.S. shares are to be converted into "freely tradeable shares" on another international exchange, according to a statement.
The delisting marks an untimely end to Didi's short-lived time as a U.S.-listed company. Investors will now be hoping for a smooth transition of Didi's U.S.-listed shares to Hong Kong. But details on how the company will go about this are thin. The move by Didi to go ahead with the delisting at least rules out the risk of it being forced to do so by regulators.
