Didi Global plans to use a mechanism that will allow it to list shares in Hong Kong without raising capital or issuing new stock as it seeks to delist from the US, two people with knowledge of the matter said.
The plan comes as the Chinese ride-hailing company is moving towards withdrawing from the New York Stock Exchange under pressure from Beijing.
Didi ran afoul of Beijing by pushing ahead with a US initial public offering (IPO) earlier this year despite being asked to put it on hold pending a review of its data practices.
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.
Didi aims to file for the Hong Kong listing by April 30 and list by June, one of the people said.
A spokesperson for Didi, whose apps, in addition to ride-hailing, offer products such as delivery and financial services, did not immediately respond to Reuters request for comment.
Unlike typical IPOs, companies listing stock by introduction in Hong Kong raise no capital and issue no new shares. The mechanism was popular among companies in the past looking to build a brand in Hong Kong and the rest of China.
Didi chose Goldman Sachs, China Merchants Bank International and China Construction Bank International to manage the Hong Kong listing process, the people said. The banks declined comment.
The Chinese company has barred employees from selling shares in the company indefinitely, dealing a blow to staff of the Chinese ride-hailing group that has come under intense regulatory scrutiny after its listing in New York.
The end of a 180-day period during which current and former staff were not permitted to sell shares was set to end on Monday, but the prohibition has been extended.
The change marked the latest setback at the group, which has lost 60% of its value, or about $38 billion in market capitalisation, since its $4.4 billion New York IPO in June.
- Reuters, with George Russell