China’s ride-hailing behemoth Didi has begun the procedure of delisting from the New York Stock Exchange and applying to list in Hong Kong instead, the company announced via a Weibo post on Friday morning.
The decision came days after Bloomberg reported the Chinese government had asked Didi to delist from the U.S. out of security fears. Didi could not be reached for comment by TechCrunch at the time.
The move is anything but surprising. The SoftBank-backed mobility powerhouse has faced immense regulatory pressure since it failed to assure Beijing its data practices were secure before its blockbuster IPO in late June.
Over the past few months, China has rolled out a litany of new data regulations, including rules that would bolster user privacy protection and restrict cross-border data transfers. A Didi executive previously said it stored data in China and it was “absolutely not possible” that it passed data to the U.S., just like “many other U.S.-listed Chinese firms.”
Didi, which had about 500 million annual users as of March, pulled itself from Chinese app stores after it came under a cybersecurity review in early July. People with the app installed on their phones can continue using it but new users or those who have switched phones would have to download Didi alternatives.
Didi’s market cap currently stands at $37.6 billion. Its shares have plunged from more than $15 apiece at debut to $7.80 as of Thursday.