Lixiang Education Holding Announced That It Plans To Change The Ratio Of Its American Depositary Shares To Its Ordinary Shares; From The Current ADS Ratio Of 1 ADS To 5 Ordinary Shares To A New ADS Ratio Of 1 ADS To 10 Ordinary Shares
Portfolio Pulse from Benzinga Newsdesk
Lixiang Education Holding Co., Ltd. has announced a change in the ratio of its American Depositary Shares (ADS) to its ordinary shares. The current ratio of 1 ADS to 5 ordinary shares will be adjusted to a new ratio of 1 ADS to 10 ordinary shares, with the change expected to take effect on or about January 3, 2024.
December 15, 2023 | 2:17 pm
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Lixiang Education Holding Co., Ltd. (LXEH) plans to change its ADS to ordinary share ratio from 1:5 to 1:10, effective around January 3, 2024.
The change in ADS ratio does not alter the underlying value of the company but may affect the liquidity and marketability of the shares. It could lead to a temporary adjustment in the stock price as the market assimilates the new ratio. However, the long-term impact on the stock price should be neutral, as this is a technical adjustment without changing the company's fundamentals.
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