Ride-hailing Didi to Be Delisted from NYSE

Chinese ride-hailing giant Didi announced on Monday that it will delist from the New York Stock Exchange. Didi plans to file Form 25 with the US Securities and Exchange Commission on or after June 2. Some 96% of shareholders who cast votes at the meeting favored the delisting proposal, the company said.

As of February 28, 2022, Cheng Wei, the founder and CEO of Didi, maintained 6.5% of the shares and had 33.1% voting rights. Liu Qing, co-founder and president of Didi, held 1.6% of shares and had 22.7% voting rights. Stephen Zhu had 1.2% of the voting rights.

In addition, SoftBank held 20.2% of shares and had 10.7% voting rights while Uber held 11.9% of shares and had 6.3% voting rights and Tencent held 6.5% of the shares and had 3.5% voting rights.

As of today, Didi’s share price fell to $1.50, which is nearly 90% lower than the share’s issue price. The company’s current market value is about $7.3 billion, down by more than $60 billion compared with that at the time of listing.

Didi was listed on the NYSE on June 30, 2021 with an issue price of $14 per share. At the beginning of July, 2021, the National Cyberspace Administration issued a notice on the removal of Didi’s app. On December 3, 2021, Didi decided to start the delisting process from the NYSE and, instead, began preparations to list in Hong Kong. However, Bloomberg reported in March this year that the company had since suspended its Hong Kong listing process. In April, Didi said that it would not apply for its shares to be listed on any other stock exchange before the delisting from the US was complete.

According to the company’s latest financial report, Didi’s total revenue in 2021 was 173.83 billion yuan ($26.12 billion), an increase of 22.6% over 141.7 billion yuan in the same period of 2020. In specific, Didi’s ride-hailing business revenue from China in 2021 was 160.52 billion yuan, a year-on-year increase of 20%. International business revenue totaled 3.62 billion yuan, a year-on-year increase of 55.4%, while the revenue of other initiatives was 9.68 billion yuan, up 68.1% year-on-year. Didi’s operating loss in 2021 was 48.44 billion yuan, while the net loss was 49.33 billion yuan.

SEE ALSO: Ride-hailing Giant Didi to Explore Driverless Trucks

Didi’s board of directors has also undergone some changes. In April, Tencent President Chi Ping Lau resigned as a director, along with the appointment of current Associate General Counsel of Tencent, Liang Fengxia, as a new director. Daniel Zhang, Chairman and CEO of Alibaba, resigned from the board, while Zhang Yi, Senior Legal Director of Alibaba Group and general counsel of Alibaba Local Services Company, was appointed as a director of the Didi Board of Directors.