Listing and Delisting of DiDi Global Inc. on NYSE

Listing and Delisting of DiDi Global Inc. on NYSE
Case Code: FINC203
Case Length: 9 Pages
Period: 2021-22
Pub Date: 2023
Teaching Note: Available
Price: Rs.300
Organization: Didi Chuxing Technology Co
Industry: Transport & Logistics
Countries: China
Themes: Delisting, FDI Policies
Listing and Delisting of DiDi Global Inc. on NYSE
Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

DiDi Goes Public

DiDi had plans to list its shares on the Hong Kong Stock Exchange before going in for an IPO in the US. When it approached the Hong Kong Exchange though, some of its practices were questioned. The Hong Kong authorities asked the company if it was operating in compliance with Chinese regulations, and if had licenses for every city in which it operated. Several other questions were posed. As DiDi found the demands by the Hong Kong Exchange highly stringent, it decided to abandon the Hong Kong listing and go in for a listing on the NYSE..

Problems with the Chinese Government

Over the years the Chinese government had encouraged DiDi. It had even ignored it if the company had transgressed rules, if did not meet specific standards on licenses, or if the drivers did not have required experience. In 2016, the transportation ministry of China asked ride hailing companies to share real-time data about drivers, cars, and trips. But DiDi did not share the information with the regulators..

Plan to Delist

In August 2021, the US SEC announced that it would temporarily halt all the IPOs from Chinese companies due to the prevailing uncertainty over DiDi and other companies that were listed in the US stock exchanges..

Looking Ahead

For the quarter ending September 2021, DiDi announced losses of US$ 4.7 billion after revenues came down in the wake of regulatory issues..

Exhibits

Exhibit I: Different Vehicles Provided by DiDi
Exhibit II: DiDi’s Share Price Trends (Opening Price Trend)
Exhibit III: DiDi’s Share price Trends (DiDi Global Inc. - NYSE)
Exhibit IV: List of DiDi Apps in China

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