Tuesday, December 6, 2022

China asks Didi to delist from U.S. on security fears

Chinese officials have urged top executives of ride-hailing giant Didi Global Inc (DIDI.N) to design a plan to delist from U.S. exchanges due to security concerns.

According to the article, China’s tech authority has requested that the firm be delisted from the New York Stock Exchange due to worries over the release of sensitive data.

According to the news article, proposals under discussion include straight-up privatization or a share issue in Hong Kong followed by delisting from the US.

If the privatization goes through, the proposal will most likely be at least a $14 IPO price, because a lower offer so soon after the June IPO could result in lawsuits or shareholder pushback, according to the report, which cited sources.