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Didi Global Stock Off as Chinese Ride-Hailing Firm to Delist From NYSE

Didi Global went ahead with a $4.4 billion IPO earlier this year despite pressure from Chinese officials not to do so.
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Didi Global  (DIDI) - Get DiDi Global Inc. Report, China's version of Uber  (UBER) - Get Uber Technologies, Inc. Report and Lyft  (LYFT) - Get Lyft, Inc. Class A Report, said that it planned to withdraw from the New York Stock Exchange in favor of a Hong Kong listing.

Didi did not elaborate on the reasons for its decision, but did say that it would organize a shareholder vote to ensure that its NYSE-listed stock would be convertible into "freely tradable shares" on another internationally recognized exchange. 

"Following careful research, the company will immediately start delisting on the New York stock exchange and start preparations for listing in Hong Kong," Didi said on its Weibo social media account Friday.

The move comes amid pressure from Chinese regulators. 

Reuters reported in November that China's authorities were pressuring Didi's top executives to plan to delist due to concern about data security. 

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Didi went ahead with a $4.4 billion initial public offering in June despite being asked to put it on hold by Chinese officials due to those data concerns. 

China’s Cyberspace Administration, which oversees data security, was worried about the transmission of sensitive data, reports said. So it asked the company to set up a plan.

That could have involved a privatization or listing on the Hong Kong Stock Exchange followed by a delisting from the NYSE, sources told Bloomberg.

Earlier this year, the CAC ordered app stores to remove 25 of Didi's mobile apps and told the company to stop registering new users. 

Shares of Didi Global, Beijing, at last check dropped 9.6% to $7.05.