China based ride hailing company DiDi Global Inc. (NYSE: DIDI) has banned its current and former employees from selling shares of the company indefinitely. The Financial Times was the first to publish the development on its platform on December 28.
According to the Financial Times, the 180 day lock-up period after the company’s initial public offering (IPO) during which current and former employees of the company were not allowed to sell shares elapsed on December 27. However, the company has extended the prohibition indefinitely.
According to the report current and former employees of the company have been barred from selling their shares until the company secures a successful secondary listing in the Hong Kong Stock Exchange.
For some time now, Chinese market regulators have been cracking the whip on listed companies in China a situation which forced DiDi to announce that it’s planning to delist from the New York Stock Exchange and concentrate on the Hong Kong listing.