A lot of tech companies went public in 2021, and many if not most of them are trading below their IPO prices. That’s OK—markets rise and fall, and with any luck, the shares will recover eventually But if you’re a shareholder in one such company, Chinese ride-hailing firm didi global, you may be out of luck.
What will happen to Didi shareholders?
May 23 (Reuters) – Chinese ride-hailing giant Didi Global will delist from the new york stock exchange , after a majority of the company’s shareholders voted in favor of the plan, putting to rest a year-long clash with Beijing over its U.S. stock market listing.
Does Didi have a future?
DiDi Stock Makes Sense for the risk-tolerant investor For several months ahead, the future of DIDI stock will be vague That means only investors confident in its recovery and outlook should pursue this one. The company has an excellent asset-light business model and is operating in a huge and growing market.
Is Didi going to be delisted?
Less than a year after Didi Global listed its shares in the U.S., the Chinese ride-hailing company said its shareholders approved its plan to delist from the New York Stock Exchange , concluding a regulatory roller-coaster ride that sent its market value plummeting.
What happens to Chinese stocks if delisted?
For companies that have a listing elsewhere, most commonly in hong kong, even if delisting occurs, funds can convert U.S. shares into Hong Kong shares The delisting procedure itself would pass on no fundamental implications, thus their valuations should remain the same.
Why is DiDi stock going down?
DiDi Global shares sank Monday after the Chinese ride-hailing company said it was preparing to delist from the New York Stock Exchange , and reported a fourth-quarter revenue decline of 12.
What happens to shares when a company delists?
If a company has been delisted, it is no longer trading on a major exchange, but the stockholders are not stripped of their status as owners. The stock still exists, and they still own the shares ; however, delisting often results in a significant or total devaluing of a company’s share value.
Why is Didi Global delisting?
The government crackdown included a raid on the company’s offices for a cybersecurity review, removal of DiDi’s app from app stores for wrongly collecting personal data, and suspension of new-user registrations in China , a regulatory filing said.
How do 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.
What is Didi worth?
June 30 (Reuters) – Didi Global Inc (DIDI. N) shares ended their first day of U.S. trading slightly over their initial public offering (IPO) price, valuing the ride-hailing giant at $68.49 billion in the biggest U.S. listing by a Chinese company since 2014.
Is Didi still operating in China?
On 4 July 2021, the Cyberspace Administration of China ordered app stores to remove DiDi , after citing violations on the company’s collection and usage of personal information. As a result, DiDi stopped registering new users and agreed that it would make changes to comply with rules and protect users’ rights.
Is Didi owned by Uber?
Uber acquired the stake in 2016 after selling its China business to Didi Uber said in its latest annual report that in 2021 it recognized an unrealized $3 billion loss on its Didi investment.
Citations
https://www.wsj.com/articles/didi-says-it-will-proceed-with-delisting-from-nyse-11653310564
https://www.investors.com/news/best-chinese-stocks-to-buy/
https://finance.yahoo.com/quote/DIDI/community/
https://www.marketbeat.com/stocks/NYSE/DIDI/
