DiDi Global Inc. (DIDI), a mobility technology platform, has soared 9.62% in the premarket trading session. As a result, DIDI stock is trading at $8.55 at the time of the writing. The increase could be attributed to DIDI’s plans to get delisted from NYSE. On Thursday, the stock closed the day at $7.80 after slightly declining by 0.13% during regular trading hours.
Why DIDI surging?
In the late hours of Thursday, news emerged that DIDI plans to delist its shares from the NYSE in the US. The company intends to pursue its listing in Hong Kong. That news depicts a dramatic reversal as just weeks ago; the Chinese ride-hailing group’s Initial Public Offering was done in New York. The company said that the move to get delisted from NYSE was supported by its board of directors. The move has come after the Chinese authorities have wrapped up a cyber-security probe in the company that would mark a financial decoupling between US and China.
Executive Authorization of Delisting
On Thursday, DIDI announced that its board of directors had authorized and supported the company to undertake the necessary procedures to file the relevant applications for the delisting of the company’s ADS from NYSE. The board also asked the company to ensure that ADS would be convertible to the freely tradable shares of the company on some other internationally recognized stock exchange at the election of ADS holders.
What’s Ahead for DIDI?
During the last three months, DIDI stock has declined by more than 10%, based on the harsh policies by the Chinese regulators. With its plans to delist from NYSE, the analysts expect the company to leave a mark in the market where it gets listed.
