Chinese online ride-sharing company Didi Chuxing announced on Weibo on December 3rd that it has begun withdrawing from the US stock market.
A Didi investor at its headquarters in Beijing told the Financial Times that it is unlikely that any significant shareholder would oppose the delisting. Major shareholders such as SoftBank, Sequoia, and Tencent did not dare challenge the government.
An unnamed insider told Reuters that Didi would complete the listing in Hong Kong within the next three months and be delisted from New York before June next year.
Didi’s decision caused the stock of SoftBank Group, a significant shareholder of Didi, to drop more than 2%.
Didi was listed on the New York Stock Exchange on June 30th. Based on an issue price of US$14, Didi raised at least US$4.4 billion at the time. Didi is the largest Chinese company to IPO after Alibaba listed in the NYSE in 2014.
Just over five months on the U.S. stock market, Didi announced its withdrawal. Didi has had more losses when withdrawing from U.S. stocks and moving to a listing in Hong Kong. And the issue price may be lower than the price in the US.