Didi shareholders give green light for New York delisting after IPO saga sees US$60 billion in value evaporate
- Didi said that more than 96 per cent of shareholder votes cast were in favour of the delisting plan
- Ride hailing giant was put under an unprecedented Chinese cybersecurity investigation days after it forced its way to a US IPO
Didi Global on Monday received approval at a special shareholder meeting to “voluntarily” delist from the New York Stock Exchange, capping an 11-month fiasco that wiped out US$60 billion in value and turned the ride-hailing giant into a warning sign for investment in Chinese tech stocks.
The company said in a statement on Monday evening that more than 96 per cent of shareholder votes cast were in favour of the delisting plan.
The result was largely expected as the company had explained to its shareholders that delisting in New York was a necessary step for the company to secure necessary approvals from China’s regulators to resume normal business operations.
Didi said earlier this month that it could not restore its 26 apps in various Chinese app stores without the delisting. The company was put under an unprecedented Chinese cybersecurity investigation days after it forced its way to a US$4.4 billion initial public offering in the United States.
After the delisting, Didi Global, backed by major investors SoftBank Group Corp, Tencent Holdings and Uber Technologies, has no immediate plan to go public in another market.
Didi said it plans to file a delisting application with the US Securities and Exchange Commission on, or after, June 2, and the delisting “is expected to occur ten days thereafter upon the effectiveness of” the application.