Public shareholders of ride-hailing platform Didi have voted in favor of delisting the Chinese firm from the New York Stock Exchange, TechNode reported. The company said it was necessary to better cooperate with a cybersecurity review by Chinese regulatory authorities amid Beijing’s crackdown on tech firms.
The decision, which 96.3% of shareholders voted for, led to a 4% drop in the firm’s share price at the close of trade on Monday.
The company’s shares listed at US$14 apiece and have now dipped to US$1.56 per share, TechCrunch noted. Since its IPO, the company’s valuation has dropped 90%.
Shortly after going public on the New York Stock Exchange in June 2021, the Chinese government tightened regulations for tech firms from China. The company was also pressed to stop accepting new users on its platform over potential data concerns.
Didi could reportedly relist on the Hong Kong stock exchange. However, it is unclear whether it will pass Hong Kong’s rigorous regulations, a source told Bloomberg.
See also: Tencent’s financial health in 5 charts
Editing by Miguel Cordon and Arpit Nayak
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