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Didi Set To Delist From The NYSE, But Experts Say That Investors Will Play The Waiting Game

Didi warned its investors that they would have problems with trading their shares right after the delisting move.

Investors Playing The Waiting Game As Didi Set To Delist From The NYSE

On Monday it was apparent that Didi shareholders will be backing its plans to delist from the NYSE which comes in less than a year since this ride-hailing behemoth made its debut with a $4.4 billion IPO. 

Last week, Didi warned its investors that they would have problems with trading their shares right after the delisting move. But according to experts and analysts, most of these shareholders, many of whom invested in Didi before its IPO, will ride out the storm and stick with the company until it pleases regulators from Beijing and gets itself listed on the Hong Kong Stock Exchange. 

Didi is having a meeting of its shareholders today evening in Beijing. The company faced immense criticism from the authorities as it pushed through with its New York Stock Exchange IPO last year. Chinese regulators were concerned that this move by Didi would enable regulators from the USA to gain access to sensitive data on the company’s portals. 

In retrospect, the mainland’s regulators went ahead and barred Didi from taking on new customers, and even went to the extent of removing all 26 of its apps from different app stores. As a result, Didi lost around $7.4 billion for the year ending 2021. The value of its shares fell from $14 to $1.5 this last Friday. 

Didi once had a major slice of the market, but opponents have been gnawing away at it over the last year, luring customers with bold pricing and promotional deals.

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