What does Didi's delisting mean? What shall investors do?
$DiDi Global Inc.(DIDI)$ announced the results of the Extraordinary General Meeting, before open on May 23rd, and the voting was 781,060,684 votes in favour and 30,374,766 votes against,
At the same time, Didi also provided Notification to delist its American Depositary Shares from the New York Stock Exchange. Click here to review.
As this is a "voluntary delisting", according to the Securities Law of the United States, the board of directors of companies listed in the United States may decide to approve voluntary delisting, then notify the exchange and submit Form-25 to the SEC within 10 days, thus completing delisting. Didi is planed to delist within 10 days after June 2nd.
After that, Didi's shares can continue to be traded on OTC, just like $Luckin Coffee Inc.(LKNCY)$ once did. Although the liquidity in OTC market are typically not good. But companies with tons of shareholders like Didi are more likely to be active in OTC market.
Tips: $Tiger Brokers(TIGR)$ is supporting orders in OTC market.
In addition, referring to the 6-K submitted on May 11 to specify the reasons for voluntary delisting (Click to Review). In short, delisting is to better complete the cybersecurity review and rectification, to strive for the Didi App to be online as soon as possible.
As for IPO on Hong Kong Stock Exchange, Didi has made it clear that it does not intend to listi in Hong Kong. Here maybe the reasons,
- First, the cybersecurity review and rectification has not yet been completed, even if Didi applied, HKEX will not pass;
- Second, the investor suits has not been completed.$Hong Kong Exchanges(00388)$ will get into troubles if let it IPO;
- Third, the current market environment cannot afford such a large IPO in Hong Kong.
Therefore, don't expect Didi to return to Hong Kong or China Mainland for listing in short term. If investors are optimistic about Didi's business and have confidence in its company, for those who is holding or plan to buying shares, Didi App back to App stores should be the priority.
Reference reading:
The latest news of Didi's voluntary delisting
If Didi returns to HKEx, what about the stocks in the hands of investors?
A lawsuit against Didi? Don't worry, look at the prospectus first.
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