[Asia Economy Reporter Kwon Jae-hee] Despite implicit warnings from Chinese regulatory authorities, Didi Chuxing, China's largest ride-sharing service provider, which pushed ahead with its listing on the New York Stock Exchange last June, is finally voluntarily withdrawing from the New York stock market.
According to Bloomberg on the 3rd (local time), Didi Chuxing announced through Weibo, the Chinese version of Twitter, that it would immediately begin the delisting process from the New York Stock Exchange. Didi Chuxing added that it would soon obtain board approval and start preparations for listing in Hong Kong.
However, Didi Chuxing did not disclose specific plans regarding the delisting from the New York Stock Exchange.
Previously, Didi Chuxing was listed on the New York Stock Exchange on June 30th, raising $4.4 billion (approximately 5.2 trillion KRW). This was noted as the largest U.S. IPO since Alibaba Group in 2014. However, it has now officially formalized its voluntary withdrawal from the listing in just over five months.
Recently, the Chinese government reportedly pressured Didi Chuxing to voluntarily delist from the New York Stock Exchange, citing security concerns. According to Bloomberg, on the 25th of last month, the Cyberspace Administration of China requested Didi Chuxing to submit a plan for voluntary delisting from the New York Stock Exchange due to "concerns over sensitive data leakage."
Didi Chuxing pushed ahead with its New York listing despite pressure from the Chinese government and faced retaliatory measures such as bans on recruiting new members and investigations from authorities.
Meanwhile, on the 2nd, Didi Chuxing's stock price on the New York Stock Exchange closed at $7.80, down 0.13% from the previous day. On its first day of listing on June 30th, Didi Chuxing's closing price was $14.14.
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