DiDi Global (DIDI -3.15%), the largest ride-hailing company in China, plans to delist its shares from the New York Stock Exchange and pursue a new listing in Hong Kong. The announcement, which comes less than six months after DiDi's initial public offering (IPO), shouldn't surprise investors.
Full Answer
Should you buy Didi stock?
Dec 10, 2021 · Following months of speculation, Chinese ride-hailing app Didi announced last week that it would delist from the New York Stock Exchange and pursue a listing in Hong Kong. The company raised $4...
Is Didi global stock a buy?
Dec 14, 2021 · DiDi Global ( DIDI -3.15% ), the largest ride-hailing company in China, plans to delist its shares from the New York Stock Exchange and pursue a new listing in Hong Kong. The announcement, which...
When is Didi delisting?
Dec 03, 2021 · The stock has now roughly halved from that listing price. Didi’s share price sank 22%, after having initially climbed as much as 14% in …
How did Didi get in trouble with data regulators?
Apr 19, 2022 · Didi’s blockbuster IPO was the second-biggest in the U.S. by a company based in China (Alibaba Group Holding Ltd.’s was bigger) and …
What will happen to Didi shares after delisting?
“If Didi delists, one of the possible outcomes for the investors would be a share transfer,” Dechert's Chan said. Didi, which is pursuing a listing on the main board of the Hong Kong stock exchange, said it plans to allow its shareholders to convert their US American depositary receipts into Hong Kong shares.Feb 17, 2022
Will Didi stock be delisted?
Didi announced on December 2, 2021, that it would delist from the New York Stock Exchange (NYSE) and move to the Hong Kong Stock Exchange (HKEX).Jan 10, 2022
What happens when stock is delisted?
Here's what happens when a stock is delisted. A company receives a warning from an exchange for being out of compliance. That warning comes with a deadline, and if the company has not remedied the issue by then, it is removed from the exchange and instead trades over the counter (OTC), meaning through a dealer network.Mar 7, 2022
What happens to Chinese stocks if delisted?
If any delisting actually happens, the fund won't be able to switch to the Hong Kong shares like other funds. But again, that would be at least two years away. Invesco says it will “fully comply” with the sanctions when the day comes.Mar 18, 2022
Why did Didi get delisted?
DiDi's delisting decision comes amid brewing regulatory pressures in both Washington and Beijing. The Securities and Exchange Commission finalized rules last week that would force foreign companies to open their books to U.S. auditors or be delisted from U.S. markets if they don't comply for three years.Dec 9, 2021
Is NIO in danger of being delisted?
Your Takeaway on NIO Stock Nio's delisting risk is modest at this time. Investors should care more about the company's path to profitability. When it gets there this year at the earliest, shareholders may hold the stock as it lists on an Asian exchange.Feb 25, 2022
Is SNDL getting delisted?
Fans of Sundial Growers (NASDAQ:SNDL) are smiling this morning, and for good reason. The Canadian marijuana company announced that it had yet again avoided being delisted.Feb 9, 2022
Can a delisted stock come back?
Many companies can and have returned to compliance and relisted on a major exchange like the Nasdaq after delisting. To be relisted, a company has to meet all the same requirements it had to meet to be listed in the first place.
Can I sell a delisted stock?
If a company is delisted, you are still a shareholder, to the extent of a number of shares held. And yet, you cannot sell those shares on any exchange. However, you can sell it on the over-the-counter market. This means you can look for a buyer outside the stock exchange.Mar 21, 2022
Will Baba go up?
For its current fiscal year 2022, Alibaba is expected to earn $7.79 a share, down 22% compared to 2021. But growth is expected to ramp up in 2023, up 10% to $8.59. Click here to the top-rated stocks in the group.Apr 1, 2022
Why are Chinese stocks falling?
Chinese stocks were tumbling Monday, extending a selloff from last week amid pressures on multiple fronts, including Covid-19 lockdowns in China and regulatory threats on both sides of the Pacific. Shares in some of the country's largest companies saw stark declines.Mar 14, 2022
NYSE: DIDI
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
China's ride-hailing leader is headed back home
DiDi Global ( DIDI -5.40% ), the largest ride-hailing company in China, plans to delist its shares from the New York Stock Exchange and pursue a new listing in Hong Kong. The announcement, which comes less than six months after DiDi's initial public offering (IPO), shouldn't surprise investors.
1. Going private at a discount to its IPO price
Over the past few years, many Chinese companies that initially went public in the U.S. took themselves private before going public again on Chinese exchanges at much higher valuations. The deals couldn't be blocked because the management controlled most of the votes, and U.S. investors were often forced to sell their shares at steep discounts.
2. Retreating to an OTC exchange
A less painful option would be for DiDi to relist its shares on an over-the-counter ( OTC) exchange. That's what Luckin Coffee ( LKNC.Y 0.00% ) did after it was delisted from the Nasdaq last June. Luckin's stock had dropped below $2 per share at the time after its fabricated sales figures were exposed, but it now trades at about $13.
3. Swapping ADR shares for HK shares
In its press release, DiDi claims its ADR shares "will be convertible into freely tradable shares" in Hong Kong after it relists the stock.
Should investors still hold their shares of DiDi?
DiDi's investors might be reluctant to sell their shares at their current reduced prices, since the stock now trades at less than its estimated revenue this year. However, the stock should remain cheap for a very long time.
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.