Didi Extends Stock Option Exercise Period for Current and Former Employees

[Asia Economy Reporter Yujin Cho] Didi Chuxing, China's largest ride-hailing company, which decided to relist on the Hong Kong stock market, has indefinitely extended the stock option exercise period.

On the 28th (local time), the Hong Kong South China Morning Post (SCMP) reported, citing an internal memo, that Didi Chuxing, which decided to delist from the New York Stock Exchange, has prohibited stock trading by current and former employees until it lists on the Hong Kong Stock Exchange.

The lock-up period, which was 180 days until the day before after the New York IPO, has been indefinitely extended until after the Hong Kong stock market listing next year. This regulation also applies to employees who have left within the past 180 days.

Didi Chuxing cited providing information about the stock incentive plan to the U.S. Securities and Exchange Commission (SEC) as the reason for restricting stock option exercises.

(Photo by SCMP)

Didi Chuxing, which began the delisting process from the New York Stock Exchange on the 3rd, plans to relist on the Hong Kong Stock Exchange next year. The specific listing date is undecided.

Industry insiders expect Didi Chuxing to pursue a Hong Kong stock market listing in a dual listing format ahead of the New York Stock Exchange delisting, which could take several months.

Previously, Didi Chuxing raised $4.4 billion (approximately 5.22 trillion KRW) by listing on the New York Stock Exchange on June 30. It was the largest U.S. IPO since Alibaba Group in 2014, but due to pressure from Chinese authorities, the stock price repeatedly plummeted, and ultimately, the company decided to delist after six months.

Didi Chuxing stated, "We will ensure that the (delisted) U.S. shares can be converted into freely tradable shares on internationally recognized stock exchanges."

Didi Chuxing is known to have "forcibly" listed on the New York Stock Exchange despite public warnings from Chinese authorities about concerns over sensitive data leaks, and subsequently, the Chinese government has been conducting a cybersecurity investigation into Didi Chuxing.

After news of the Chinese authorities' investigation became known, Didi Chuxing's stock price, which had been on a sharp decline, closed at $5.38 on that day, falling more than 60% compared to the initial public offering price of $14.

This content was produced with the assistance of AI translation services.