Shares of DiDi Global Inc. dropped 2.0% in premarket trading Thursday, putting them on track to open in record-low territory, after the China-based ride-hailing giant disclosed that it would have to delist from the NYSE to complete a cybersecurity review initiated by regulatory authorities. The company said China’s Cybersecurity Review Office announced on July 2, just two days after it debuted on the NYSE, that the company was subject to a cybersecurity review that required the company to suspend new user registration. DiDi concluded that if it doesn’t complete the review and rectification, there would be a “material adverse impact” on its ability to conduct normal operations. Earlier in May, the company disclosed that the U.S. Securities and Exchange Commission was also looking into its IPO. DiDi’s stock closed Wednesday at $1.53, or 89.1% below the $14 IPO price. So far this year, DiDi’s stock has plunged 69.3%, while the iShares MSCI China ETF has tumbled 26.1% and the S&P 500 has dropped 17.4%.
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