Didi plans to delist NYSE stock just months after its IPO
The popular transport company saw quite the poor performance from its NYSE listing.
Didi is one of the most popular companies in transport for China, offering vehicle for hire services to millions of users. Earlier this year, the company decided to bring its business to the US with an IPO on the New York Stock Exchange. However, performance has been far from what executives and shareholders were hoping for. Now, Didi has announced its plans to delist its NYSE stock just months after its listing.
Didi (DIDI) announced today that it would be delisting its NYSE stock, as reported by CNBC. Following this news, shares of the company took a massive hit, down 14.42% on the day. Before the announcement, Didi (DIDI) shares were already in a rough spot, mainly due to harsher regulations from China. Back in July, the Didi app was temporarily banned from app stores, which caused shares to plummet.
Didi (DIDI) began trading on July 2, 2021 on the NYSE with shares valued at $15.53 USD. Today, the price per share was as low as $6.56 USD. This disastrous performance was originally due to the poor timing of the company’s ban from app stores right around when it went live in US markets. After consistently disappointing numbers in the months since, Didi officially decided to call it quits, which only meant further drops for the stock.
With Didi planning to delist its NYSE stock, it will be interesting to see what’s next for the company. It’s performance in China will be something to watch, as well as if it looks to expand into any other markets sometime down the road. It’s just one instance where regulations from the government meant bad news for a Chinese company on mobile stores. Tencent was recently suspended from updating existing apps or launching any new ones.
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