iphonedigital
China's Cyberspace Authority has asked the management of taxi aggregator Didi to develop a plan to delist from the New York Stock Exchange, Bloomberg wrote, citing knowledgeable sources.
Chinese authorities have demanded the delisting because of fears of sensitive data leaks, Bloomberg's interlocutors claimed. Didi has been asked to think through the details of the exit from the exchange, which have yet to be approved by the government. Among the options being considered is an outright privatisation or a listing in Hong Kong immediately after leaving the New York bourse, agency sources said.
If it returns to private company status, Didi would buy back shares at a minimum IPO price of $14. This is 72% more than the current value: Didi shares were worth $8.11 at the close of the exchange on November 24 (the US exchanges were down on November 25). A price below $14 just six months after the IPO could lead to lawsuits against the company or cause resistance among shareholders, Bloomberg sources said. They added that in the event of a follow-on offering in Hong Kong, the securities could be offered at a discount to the US exchange price.
source: bloomberg.com
Chinese authorities have demanded the delisting because of fears of sensitive data leaks, Bloomberg's interlocutors claimed. Didi has been asked to think through the details of the exit from the exchange, which have yet to be approved by the government. Among the options being considered is an outright privatisation or a listing in Hong Kong immediately after leaving the New York bourse, agency sources said.
If it returns to private company status, Didi would buy back shares at a minimum IPO price of $14. This is 72% more than the current value: Didi shares were worth $8.11 at the close of the exchange on November 24 (the US exchanges were down on November 25). A price below $14 just six months after the IPO could lead to lawsuits against the company or cause resistance among shareholders, Bloomberg sources said. They added that in the event of a follow-on offering in Hong Kong, the securities could be offered at a discount to the US exchange price.
source: bloomberg.com
