Zhihu Inc. Announces Plan To Implement ADS Ratio Change From 2 ADS Representing 1 Common Share To A Ratio Of 1 ADS Representing 3 Common Shares, Effective On Or About May 10, 2024
Portfolio Pulse from Benzinga Newsdesk
Zhihu Inc. (NYSE:ZH) announced a change in its ADS ratio from 2 ADSs representing 1 Class A ordinary share to 1 ADS representing 3 Class A ordinary shares, effective around May 10, 2024. This adjustment will act as a one-for-six reverse ADS split, requiring holders to exchange six existing ADSs for one new ADS. The ADSs will continue trading on the NYSE under the symbol 'ZH'. No fractional ADSs will be issued; instead, net cash proceeds from the sale of fractional entitlements will be distributed to the holders. This change is expected to proportionately increase the ADS trading price, though no guarantees are provided.
April 26, 2024 | 8:15 pm
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Zhihu Inc. announces an ADS ratio change effective May 10, 2024, which will act as a one-for-six reverse ADS split, potentially increasing the trading price of its ADSs.
The ADS ratio change by Zhihu Inc. is a significant restructuring of its stock representation in the U.S. market, effectively reducing the number of ADSs in circulation. This type of corporate action typically aims to increase the stock's market price, making it more appealing to investors. However, the actual impact on the stock price will depend on market perception and the company's performance leading up to and following the effective date of the change. The high relevance score is due to the direct impact of the news on Zhihu's ADSs, while the importance score reflects the potential for a significant change in investor perception and stock price. The confidence level is set at 80 due to uncertainties about market conditions and investor reactions closer to the implementation date.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100