Chinese ride-hailing app Didi has banned its former & current employees from selling company shares indefinitely.
More Details🧐 The company went public on the New York Stock Exchange (NYSE) six months ago but announced it would delist from the NYSE due to tighter regulations on Chinese stocks in foreign exchanges. Didi is currently pursuing a listing on the Hong Kong stock exchange.
Employees had a lock-up period of 180 days post-IPO during which they couldn’t sell company shares. The 180 days ended yesterday. However, the company extended the lock-up period indefinitely.
Why is this Important🤔 Didi’s shares took another hit following the news, falling as much as 3.9% in pre-market trading. Didi’s shares have lost almost 60% of their value in the past six months, accounting for ~$41 billion in market value.