Didi Global Inc. (NYSE: DIDI) provides ride hailing, taxi, chauffeur, and other mobility services. Headquartered in Beijing, China, the company made its public debut in the American Stock Market at the end of June’21. But post this, it has ended up as the latest company to become a victim of US and China’s standoff regarding access to companies’ audit records. Despite raising an eye-popping $4.4 billion in its initial public offering, the company’s stock has suffered shorting since then.
On December 2, 2021, Didi’s official site announced that the company’s BOD authorized the procedure to delist it’s ADSs from the New York Stock Exchange (NYSE), and convert them to freely tradable ordinary shares.
Didi Global Inc: Short Selling Activity
As of December 2, 2021, Didi had a total of 184,651,216 shares on loan. This has been the peak number of shares on loan, since the company’s IPO. Another interesting piece of information is that $DIDI’s utilization rate has soared to around 97.74%.
Presently, the avg. borrowing cost of $DIDI stocks has risen by almost 44.93%, signifying high shorting activity.
Additionally, the loan volume percentage of shares outstanding is 4.241%. At the same time, the loan volume percentage of shares floating is currently 60.587%.
US & China’s Audit Wars Lead to Delisting
On June 30, 2021, at its first public offering, $DIDI had a price per share of $14.14. The stock went on to hit an all time high value of $16.4 but since then has fallen. On December 3, 2021, $DIDI was priced at $6.07, which marks a descent of around 62.99% compared to its peak price.
According to headlines, the Beijing government did not favor the ride-hailing company’s move to go public. The pressure resulted in speculation that Didi will be going private in July. Since the end of 2019, several Chinese companies have departed from the American stock exchanges. The partial reason is that US legislation demands audit working papers for companies for their inspections. However, China refused to go through, believing that this would give the U.S. access to sensitive information.
Amidst this standoff, speculation has it that Didi will make its IPO in Hong Kong. But the question is whether it will be before it is delisted from NYSE. So far, the ownership at Didi’s is staying mum about the exact time it will delist amidst this bearish activity.