Yunji announces ADS ratio change in Hangzhou on Sept. 11, 2024
- Yunji Inc. plans to change its ADS ratio from 1:100 to 1:400, effective around September 13, 2024.
- Existing ADS holders will exchange four current ADSs for one new ADS, with no fractional new ADSs issued.
- The change aims to enhance market position and shareholder value, although future trading prices cannot be guaranteed.
On September 11, 2024, Yunji Inc., a prominent social e-commerce platform based in Hangzhou, announced a significant change to its American Depositary Shares (ADS) ratio. The current ratio of one ADS to one hundred Class A ordinary shares will be altered to one ADS for every four hundred Class A ordinary shares. This adjustment is expected to take effect around September 13, 2024, pending regulatory approval from the SEC. The company will file a post-effective amendment to its ADS Registration Statement on Form F-6 to formalize this change. For existing ADS holders, this will function similarly to a one-for-four reverse ADS split, requiring them to exchange four existing ADSs for one new ADS. Notably, no fractional new ADSs will be issued; instead, any fractional entitlements will be aggregated and sold, with the net proceeds distributed to the respective ADS holders. Importantly, this change will not affect the underlying Class A ordinary shares, meaning no shares will be created or canceled as a result of the new ADS ratio. The company anticipates that the trading price of the ADS will increase proportionally following the adjustment, although it cannot guarantee that the price will reach ten times its previous value. This strategic move reflects Yunji's ongoing efforts to enhance its market position and shareholder value amidst the competitive landscape of China's e-commerce sector. The company aims to maintain its growth trajectory while navigating the complexities of market dynamics and regulatory requirements.