(Bloomberg) Shares of SoftBank Corp. fell more than 5% in Tokyo as the Cyberspace Administration of China asked Didi Global Inc. to come up with a plan to delist from the US bourses.
China cites potential leakage of sensitive data in its request for Didi to exit the New York Stock Exchange.
There are proposals for a direct privatization of Didi or a share float in Hong Kong before NYSE delisting. A secondary listing in Hong Kong, would see the IPO float at a discount from Wednesday’s closing price of $8.11 in the NYSE.
Chinese regulators are expected to backtrack the delisting request, with deliberations ongoing in what would be a blow to the ride sharing giant. SoftBank holds the biggest minority stake in Didi.
Didi was under Beijing regulators’ radar after pulling the largest Chinese IPO in the US after Alibaba. The regulators had asked Didi to address security issues before listing.
Delisting from the US markets is now seen as part of punishments meted on Didi for failing to listen to Beijing’s call. If Didi lists in Hong Kong, the company may give up data control to a third party, undercutting its authority.
9984: TYO is down -5.19%, DIDI: NYSE is down -7.15% on premarket.
