Didi in talks for a second-quarter IPO in Hong Kong on its way to delisting from New York, sources say

Didi Global is in talks to launch its initial public offering (IPO) in Hong Kong in the second quarter, as China’s dominant ride-hailing company prepares to exit the New York Stock Exchange (NYSE), according to two sources familiar with the matter.

Didi’s bankers have had preliminary discussions with the Hong Kong Exchanges and Clearing Limited (HKEX) before submitting the A1 form to officially apply to list on the exchange, according to the sources, requesting anonymity for discussing a matter before its announcement.

Didi forced its way last June to a US$4.4 billion IPO in New York that defied injunctions by Chinese regulators, who later described the controversial listing as a “deliberate act of deceit.” The move set off a spate of retributions against Didi, forcing its smartphone application – the platform for drivers and passengers to interact – to be taken off app stores and setting off a series of cybersecurity investigations into the company’s use of customers’ data.

In December, Didi said it would delist from New York and explore listing in Hong Kong. The company’s bankers are now busy finding a solution to ensure Didi meets all the listing requirements in Hong Kong, including the licensing of its drivers and other issues, the sources said.