Uxin Plans To Change Ratio Of American Depositary Shares To Class A Ordinary Shares From One ADS Representing Thirty Class A Ordinary Shares To One ADS Representing Three Hundred Class A Ordinary Shares, Effective January 16, 2024
Portfolio Pulse from Benzinga Newsdesk
Uxin, a Chinese online used car dealer, has announced a change in the ratio of its American Depositary Shares (ADS) to Class A ordinary shares. The new ratio will be 1 ADS to 300 Class A ordinary shares, a significant change from the previous 1 ADS to 30 Class A ordinary shares. This change is set to take effect on January 16, 2024.
December 29, 2023 | 11:28 am
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Uxin's change in ADS ratio could dilute the value of existing ADSs, potentially leading to a negative short-term impact on the stock price as investors adjust to the new ratio.
The change in the ADS ratio effectively means that each ADS will represent more Class A ordinary shares, which could be perceived as dilution by the market. This may lead to a decrease in the perceived value of each ADS, causing a potential drop in the stock price in the short term as the market adjusts to the new ratio.
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