Timeline: Didi Global’s short-lived journey as a U.S.-listed company

HONG KONG, Dec 3 (Reuters) – Didi Global (DIDI.N) said Friday that it will delist from the New York Stock Exchange and track a listing in Hong Kong, the latest development after it clashed with Chinese regulators, by advancing its $ 4.4 billion initial public offering in July.

Didi’s decision to get off the list in the US comes as a tightening of regulatory crackdowns that has stripped billions of dollars from the ride-hailing giant’s rating.[[[[

The following are the major events since Didi publicly announced its intention to be listed in the United States:

Register now for FREE unlimited access to reuters.com

to register

June 11 – Didi, based in Beijing, publishes the application for its US listing, setting the stage for what is expected to be the world’s largest IPO in 2021.

June 17 – Reuters reports that China’s market regulator has opened an antitrust investigation into Didi, citing three people familiar with the matter. Continue reading

The investigation, the latest in a widespread crackdown on China’s so-called “platform” companies, examines whether Didi has used competitive practices that have unfairly ousted smaller competitors, and whether the pricing mechanism used by Didi’s core transportation business is transparent enough Sources said.

June 30 – Didi raised $ 4.4 billion on its IPO, near the upper end of the stated range, adding to the number of shares sold, giving a valuation of $ 73 billion on a fully diluted basis and 67.5 Billion US dollars on a basic basis.

The share ended its first day of trading slightly above the IPO price.

July 2 – The Cyberspace Administration of China (CAC) says it opened an investigation into Didi to protect national security and the public interest and that Didi was not allowed to register new users during the investigation, thereby removing Didi shares became lower.

Didi is planning a full cybersecurity risk assessment and would work fully with the relevant government agency.

July 4 – The CAC orders Chinese app stores to stop offering Didi’s app after it was discovered that the company illegally collected personal information from users.

Didi says it has stopped registering new users and will remove its app from app stores as well as make changes to comply with the rules and protect users’ rights. It is said the move could affect his earnings.

5th-6th July – Didi said it was unaware prior to going public that the CAC would launch a cybersecurity investigation or order a halt to new user registrations and app downloads in China.

Didi shares fell up to 25% in the first US trading session since Chinese regulators ordered the app from the mobile app stores in China.

July 8 – Medical data group LinkDoc Technology (LDOC.O) becomes the first Chinese company to withdraw from plans to be listed in the US after regulators opened an investigation into Didi.

July 30 – The US Securities and Exchange Commission says it will not allow Chinese companies to raise money in the United States unless they explain their legal structures and disclose the risk of Beijing interfering with their business .

Aug 10 – SoftBank (9984.T) says it will suspend its investments in China while awaiting regulatory action against the country’s tech companies.

The logo of the Chinese ride-hailing company Didi Global Inc is pictured on the floor of the New York Stock Exchange (NYSE) in New York City, USA on June 30, 2021. REUTERS / Brendan McDermid / File Photo

Aug 11 – Autonomous driving startup Pony.ai suspends its plan to go public in New York through a merger with a blank check company valued at $ 12 billion after receiving no assurances from Beijing had that it was not the aim of a crackdown on Chinese tech companies, say people familiar with the matter.

Aug 27 – China sets rules to ban internet companies whose data poses a potential security risk from being listed outside of the country, including in the United States, according to a person familiar with the matter.

September 2 – Chinese regulators call on 11 driver service providers, including Didi, Geelys (GEELY.UL) Caocao and Meituans (3690.HK) driver service providers, to raise concerns.

Sep 3 – Beijing city is considering taking Didi under state control, Bloomberg News reports. Continue reading

September 4 – Didi denies reports that the Beijing city government is coordinating businesses to invest in them. Continue reading

Sept. 7 – Beijing city government issued a faxed statement to Reuters that it is not advising companies to invest in Didi. Continue reading

September 8 – China’s Ministry of Transportation announced it would crack down on illegal behavior in the country’s ride-hailing industry.

September 10 – Chinese government officials urged leading delivery and ridesharing companies like Didi, Meituan (3690.HK), Alibaba Group (9988.HK) Ele.me and Tencent Holdings (0700.HK) to improve their income distribution and provide rest periods for the Ensure workers. Continue reading

Sept. 20 – Didi co-founder and President Jean Liu has told several close associates that she intends to step down, Reuters reported. Continue reading

September 30 – China released new draft measures to strengthen its new data protection law, including definitions of what it considers “core data” and “important” data. Continue reading

Oct. 21 – China’s cybersecurity watchdog suggested Didi and two other US-listed tech companies look into Hong Kong listings, the Wall Street Journal reported. Continue reading

Oct 29 – CAC publishes draft guidelines that companies with more than 1 million users in the country subject to a security clearance before they can send user-related data abroad. Continue reading

Nov. 8 – SoftBank Group Corp (9984.T) values ​​its Didi stake at $ 7.5 billion, 40% below cost.

Nov. 11 – Didi prepared to relaunch its ride-hailing and other apps in China by the end of the year, pending Beijing’s investigation into the company by then, Reuters reported.

Nov. 14 – CAC released a draft rule that would require companies seeking stock listings in Hong Kong to seek cybersecurity inspections when handling data that affects national security. Large internet platforms planning to set up headquarters, operations or research centers overseas should also submit a report to regulators, CAC said. Continue reading

Nov 26 – Chinese regulators urged Didi executives to develop a delisting plan from the New York Stock Exchange amid data security concerns.

December 3 – Didi announced that it would remove New York from the list and seek a listing in Hong Kong.

Register now for FREE unlimited access to reuters.com

to register

Reporting by Kane Wu; Editing by Sumeet Chatterjee

Our Standards: The Thomson Reuters Trust Principles.

https://www.reuters.com/technology/didi-globals-short-lived-journey-us-listed-company-2021-12-03/