Didi Global made an important announcement on Friday. It will delist from the New York stock exchange and pursue a listing in Hong Kong. The company decided to change its position regarding NYSE after it ran afoul of Chinese regulators by pushing ahead with its $4.4 billion U.S. IPO this summer.
Its decision to delist in the U.S. comes as a regulatory crackdown wiped billions of dollars off Didi’s valuation.
Let’s have a look at several key events to learn more about Didi’s problems. This summer, more precisely on June 11, a Beijing-based company makes public the filing for its U.S. listing. In several days, China’s market regulator initiates an antitrust probe into Didi.
On the last day of June, Didi raises $4.4 billion in its IPO. Didi’s shares end their first day of trading slightly above the IPO price.
On July 2, the Cyberspace Administration of China (CAC) makes a comment regarding Didi. The regulator says it launched an investigation into the company to protect national security and the public interest. The company says it would cooperate fully with the relevant government authority.
In less than a week, the CAC orders Chinese app stores to stop offering Didi’s app after finding that Didi illegally collected the user’s personal data.
The regulator’s decisions against Didi also affected other companies from China. On July 8, LinkDoc Technology becomes the first company to pull back from plans to list in the U.S.
On July 30, the U.S. SEC says it will not allow companies from China to raise money in the U.S. unless Chinese companies fully explain their legal structures and disclose the risk of Beijing interfering in their businesses.
In several months, Chinese regulators pressed top executives of the company to devise a plan to delist from the NYSE. On December 3, the company announced a plan to delist from New York and seek a Hong Kong listing.
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