Retail investors sold a net $3.37 million worth of Didi shares on Friday, data from Vanda (NASDAQ:VNDA) Research showed. The stock tumbled 22.2% that day after the company said it plans to pursue a Hong Kong listing, a stunning reversal as it bends to Chinese regulators angered by its U.S. IPO.
Retail investors also sold shares of Didi on Wednesday and Thursday of last week on a net basis, 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 analystat Vanda, said in an email. “As a result, they prefer to just get rid of the stock.”
Didi shares rebounded on Monday, and were recently up about 8% to $6.56 in early afternoon trading, but are still down over 50% from their June IPO price.
