Shares of Didi soared as much as 14% in U.S. premarket trading Friday.
Didi shares soared as much as 14% in U.S. premarket trading Friday after the company announced plans to delist from the New York Stock Exchange and pursue a listing in Hong Kong instead. Shares of the Chinese ride-hailing giant have been hammered by regulatory woes in its home country ever since its initial public offering in the U.S. earlier this year. The stock is down about 40% from its initial listing price. Didi’s share price was last up 6% Friday just after 6 a.m. ET. The company said Thursday it will delist from the New York Stock Exchange “immediately” and begin preparations for a separate listing in Hong Kong. U.S. shares are to be converted into “freely tradeable shares” on another international exchange, according to a statement. Investors may be hoping for a smooth transition of Didi’s U.S.-listed shares to Hong Kong. The move by Didi to go ahead with the delisting rules out the risk of it being forced to do by regulators. Neil Campling, global TMT analyst at Mirabaud Equity Research, said Didi shares were likely surging due to technical reasons.
