Didi Global (NYSE:DIDI) shares are up nearly 15% on news that the Chinese ride share and delivery company will delist from the New York Stock Exchange (NYSE) and relist in Hong Kong.
The company’s board of directors has authorized Didi Global to file for a delisting of its American depositary shares from the NYSE. It will pursue a listing in Hong Kong next year.
Chinese regulators had asked Didi Global’s top executives to devise a plan to delist from U.S. stock exchanges because of concerns about leakage of sensitive data.
Didi stock’s rallied to $8.90 U.S. in today’s pre-market trading on news of the delisting, still well below the stock’s 52-week high of $14 U.S. per share.
The Beijing-based company drew the ire of Chinese authorities when it proceeded with its New York stock offering this past summer, despite requests that it ensure the security of its data before the initial public offering (IPO).
Chinese regulators placed Didi Global under a cybersecurity review days after its U.S. market debut, removed its services from domestic app stores, and asked the company to work on plans for a withdrawal from the NYSE.
