shares sank in premarket trading Monday after the Chinese ride-hailing company said it was preparing to delist from the New York Stock Exchange, and reported a fourth-quarter revenue decline of 12.7%.
US-listed shares of DiDi (ticker: DIDI) fell 18.3% to $ 2.01. The stock has fallen more than 50% year to date.
DiDi said over the weekend it would hold an extraordinary shareholders meeting on May 23 to vote on its delisting from the NYSE.
Back in December, the company said it planned to delist its shares in New York just months after going public. Shortly after the DiDi IPO, Chinese authorities announced they had launched a probe into the company for allegedly violating the country’s data privacy and national security laws. Chinese government agencies raided the company’s offices for a cybersecurity review a few weeks later.
In a press release Saturday, DiDi said it was “in full cooperation with the cybersecurity review in China,” and in order to do so it would not apply for listing on any other stock exchange until the delisting was completed. The company had said in December it was planning a listing in Hong Kong.
The China Securities Regulatory Commission said Saturday that DiDi’s planned withdrawal from the US was an “independent corporate decision made by the company based on its own situation and market conditions.”
DiDi reported revenue in the fourth quarter of 40.8 billion yuan ($ 6.4 billion), down from 46.7 billion yuan a year earlier. The bulk of the revenue decline came from its China Mobility division. The loss in the quarter was about $ 27 million.
Write to Joe Woelfel at email@example.com