Embattled Chinese ride-hailing company Didi intends to use a mechanism that will allow it to list shares on the Hong Kong Stock Exchange without issuing new stock or raising any capital, according to two people with knowledge of the matter, reports Reuters. The plan comes as Didi is looking to withdraw from the New York Stock Exchange under pressure from Beijing after running foul of Chinese authorities by pushing ahead with an initial public offering (IPO) there earlier this year despite being asked to put it on hold while a review of its data practices was conducted.
The Hong Kong mechanism, known as ‘listing by introduction,’ would allow owners of Didi US shares to transfer them to the city’s bourse gradually, people with knowledge of the matter told Reuters. They declined to be identified as the plan was not yet public.
Didi aims to file for the Hong Kong listing by end-April and list by June, one of the people said. The plans are being prepared six months after Didi, sometimes dubbed the Uber of China, made its debut in New York after raising $4.4 billion in a conventional IPO. It said earlier this month that it plans to delist from the US bourse and pursue a Hong Kong listing.