NEW YORK (Reuters) – Retail investors have been among those selling shares in Didi Global, which tumbled after the ride-hailing company revealed its plan to withdraw from the New York Stock Exchange.
Retail investors sold a net $3.37 million worth of Didi shares on Friday, data from Vanda Research showed, and the stock tumbled 22.2% after the company said it planned to pursue a Hong Kong listing, a stunning reversal as it bends to Chinese regulators angered by its U.S. IPO.
On a net basis retail investors also sold shares of Didi on Wednesday and Thursday of last week, after mostly buying shares of the stock over the past month, according to Vanda’s data.
“I believe that most investors do not fully understand how the de-listing process works – or at least, they cannot be bothered to know,” Giacomo Pierantoni, research analyst at Vanda, said in an email. “As a result, they prefer to just get rid of the stock.”
Didi shares rebounded on Monday and were up about 8% in early afternoon trading to $6.56, still down over 50% from their June IPO price.
Graphic:Retail investors and Didi shares-https://graphics.reuters.com/DIDI-STOCKS/RETAIL/jnvweaxgnvw/chart.png
(Reporting by Lewis Krauskopf; Additional reporting by Ira Iosebashvili; Editing by David Gregorio and Jan Harvey)