China’s Didi asked to be delisted from the US, SoftBank shares to fall: report
A navigation map in the app of the Chinese ride-hailing giant Didi can be seen on a mobile phone in front of the app logo, which is displayed in this illustration image dated July 1, 2021.
Florence Lo | Reuters
GUANGZHOU, China – SoftBank shares extended their losses on Friday after Bloomberg reported that Chinese regulators asked Didi executives to formulate a delisting plan from the United States
SoftBank shares in Japan lost 4.77% during their lunch break. SoftBank’s Vision Fund held more than 20% of Didi following its listing in the US.
Bloomberg’s report says regulators want Chinese ride-hailing giant Didi to be removed from the New York Stock Exchange over concerns about losing sensitive data. The news agency quoted people familiar with the matter who did not want to be named because of the sensitivity of the matter.
CNBC was unable to confirm the Bloomberg report. Didi declined to comment on the report when contacted by CNBC.
The Cyberspace Administration of China has asked Didi to work out the details for a delisting, which is subject to government approval, Bloomberg said.
Didi could seek either privatization or a listing in Hong Kong after delisting in the US, the report said.
A privatization would come at an IPO price of $ 14 per share, while an IPO in Hong Kong would likely come at a discount to the price of Didis’ shares in the US, according to Bloomberg.
A state-directed delisting would be an unprecedented move, but it underscores Beijing’s ongoing drive to rule tech giants and subject them to stricter regulation. Didi in particular is a special case. Shortly after the US IPO in June, regulators initiated a cybersecurity review of the company.
Didi reportedly drew the wrath of regulators by pushing an IPO without solving any overt cybersecurity issues that authorities claimed they had resolved. Didi is China’s largest ride hailing app and contains a lot of data about travel routes and users.