Stock Groups

China’s Didi asked to delist from U.S., SoftBank shares fall: Report

[ad_1]

The Didi app’s navigation map can be seen on a smartphone in front the logo of Didi. This illustration was taken July 1, 2021.

Florence Lo| Reuters

GUANGZHOU, China — Shares of SoftBankAfter Bloomberg’s report that Chinese regulators had asked, the losses were extended on Friday Didi’sTo develop an exit strategy from the U.S., executives must create a plan.

SoftBank Japan shares were at lunchtime down by 4.77%. SoftBank Vision Fund held more than 20% Didi after its U.S. Listing.

Bloomberg’sAccording to a report, regulators have asked Didi, the Chinese ride-hailing firm from China, not to list on the New York Stock Exchange. This is due in part because they are concerned about sensitive data being leaked. People familiar with the subject asked to remain anonymous due to its sensitive nature.

According to the report, Didi was asked by the Cyberspace Administration of China to devise the details of a delisting. This will require government approval.

According to the report, Didi may choose to go for privatization in Hong Kong or an American listing after being delisted in the U.S.

Bloomberg reports that a Hong Kong float could be privatized at a price of $14 per share at which the company listed. However, this would likely come at a discount from what Didi shares are trading for in the U.S.

Didi did not respond to the report.

Although a state-directed delisting is a unique move, it also highlights Beijing’s continuing push to rein in tech giants and tighten their regulation. Didi is an exceptional case. Soon after, it was a sensational case. IPO in the U.S. in JuneRegulators opened a cybersecurity review into the company.

Didi reportedlyThe regulators were angry that Didi was moving ahead with the IPO while not addressing the cybersecurity problems the authorities needed to be resolved. Didi is China’s most popular ride-hailing app. It holds large amounts of data about travel routes and users.

[ad_2]