Today marks the last day of DiDi being listed, you have to make your decision today
$DiDi Global (Delisted)(DIDI.US$ had filed form 25 with SEC on 2 June and that means it will be delisted on 12 June. Since 11 and 12 June are weekends, that means today is the last day it will be trading on the exchange. After today, the stock will be delisted and have to be trade OTC.
What does it mean? When a firm is delisted, its shares will be relegated to the US "over-the-counter" (OTC) market. It is mostly an unregulated platform with far less liquidity than the NYSE. Many institutional investors won't be able to invest in DiDi, due to company policy, when it is being traded OTC. That means there are a lot lesser buyers and sellers.
What is the implications of lesser liquidity?
Price volatility. Price will fluctuate a lot. The buy price and sell price most likely will have a huge gap.
So if you are selling urgently but no one is buying that means you have to sell at whatever low ball price people are trying to buy at![]()
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And if you are buying urgently to close your short position or to fulfil your options obligations, you have to buy at whatever ridiculous price people are selling at![]()
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. Just like what happened with $Luckin Coffee(LKNCY.US$, delisted at $0.95 but the price keep going up and up and up. Highest was $17.79.
Here are some useful articles for you to read and hope they are helpful for you![]()
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moo moo article on delisting
What does it mean? When a firm is delisted, its shares will be relegated to the US "over-the-counter" (OTC) market. It is mostly an unregulated platform with far less liquidity than the NYSE. Many institutional investors won't be able to invest in DiDi, due to company policy, when it is being traded OTC. That means there are a lot lesser buyers and sellers.
What is the implications of lesser liquidity?
Price volatility. Price will fluctuate a lot. The buy price and sell price most likely will have a huge gap.
So if you are selling urgently but no one is buying that means you have to sell at whatever low ball price people are trying to buy at
And if you are buying urgently to close your short position or to fulfil your options obligations, you have to buy at whatever ridiculous price people are selling at
Here are some useful articles for you to read and hope they are helpful for you
moo moo article on delisting
Fortune take on DiDi delisting
https://fortune.com/2022/05/23/didi-shareholders-vote-delist-us-shares-hong-kong-exchange-nyse/
My own research on DiDi delisting
doctorpot1 :Seems like I'm gonna be a bag holder of a pink sheet until they re-list 😭😭
https://www.moomoo.com/community/feed/108197927714822?data_ticket=5b3500b278c1b7aa4a176e85285988a1&futusource=nnq_search_search-result
https://fortune.com/2022/05/23/didi-shareholders-vote-delist-us-shares-hong-kong-exchange-nyse/
My own research on DiDi delisting
doctorpot1 :Seems like I'm gonna be a bag holder of a pink sheet until they re-list 😭😭
https://www.moomoo.com/community/feed/108197927714822?data_ticket=5b3500b278c1b7aa4a176e85285988a1&futusource=nnq_search_search-result
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Siausin : I just checked DiDi website. Nothing is mentioned today is last day of trading. If what you said is indeed the case, it just show again how irresponsible DiDi management has been…to the extent they didn’t even bother to inform shareholders in advance today is last trading and left their small shareholders in total limbo
doctorpot1OP Siausin: oh they did mention in their website they are filing form 25 on 2nd June and they did file it on the 2nd. The 12 June delisting date is derived from the SEC ruling where 10 days after filing form 25. it will be delisted. as shown here:
https://www.investopedia.com/terms/s/sec-form-25.asp
Siausin doctorpot1OP: Yes I did read that but wi won’t call that a proper notice. That’s for lawyer/financial advisor who has deep knowledge of the market rules. Small investors? They need to follow up with explicit announcement that today is the last trading day. Not every small investor can decipher what that May 23 notice meant
doctorpot1OP Siausin: Yea that's why I prefer SGX, their rules about notifications and filing are a lot simpler and more layman. Even the general public can easily understand.
for US market, I had to do a lot of readings. Their forms naming convention is so confusing 6-K la, 25 la, 1-K la. so many numbers -.-
Siausin doctorpot1OP: Agree. That said, I think DiDi can be a more responsible company and helpful to retail investors by releasing clear concise announcements..not everyone has the knowledge you have or the institutional support of their big shareholders SoftBank, Uber., etc. I have read many announcements from US and other Chinese publicly traded companies. Compare to them Didi announcement falls way way way short.
doctorpot1OP Siausin: At least we still have moo moo community who will post news and findings, so retail investor can keep up to date
manchutime : so if i still have shares after today what happens?
doctorpot1OP manchutime: from what I know, you still own the shares as moo moo supports OTC trading. you can see the last link for the details where I asked CS about it. I'm holding as I'm hoping they will list in HK and then all ADR will swap to HK shares.
kiwiwiya doctorpot1OP: You answered responsibly. The staff from Futuo just called me and said that I could continue to hold but not to trade over the counter.
doctorpot1OP kiwiwiya: ahh, that is different from what they told me
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