Aurora Mobile Adjusts ADS Ratio Effective December 11: Shifts from 3 ADS for 2 Shares to 3 for 40, Equivalent to One-for-Twenty Reverse Split
Portfolio Pulse from Benzinga Newsdesk
Aurora Mobile Limited (NASDAQ:JG) announced an adjustment to the ratio of its American depositary shares (ADSs), effectively executing a one-for-twenty reverse ADS split. Initially set for December 6, 2023, the change will now take effect on December 11, 2023. The adjustment changes the ratio from three ADSs representing two Class A common shares to three ADSs for forty Class A common shares. This reverse split will not affect the underlying Class A common shares, and no shares will be issued or cancelled. ADS holders will exchange twenty ADSs for one new ADS, with The Bank of New York Mellon facilitating the exchange. Aurora Mobile's ADSs will continue trading on the Nasdaq under the ticker 'JG'.
December 06, 2023 | 9:13 am
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Aurora Mobile Limited's one-for-twenty reverse ADS split will reduce the number of ADSs without affecting the underlying Class A common shares. The change is set for December 11, 2023, and will require ADS holders to exchange twenty ADSs for one new ADS.
Reverse stock splits often aim to boost the stock price by reducing the number of shares available, which can make the stock more appealing to investors. However, the impact on the stock price can be neutral in the short term as the market adjusts to the new share structure. The importance is rated high because it's a significant corporate action, but the confidence is not at 100 because market reactions to reverse splits can be unpredictable.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100