Lufax Holding Ltd Announces Plan to Implement ADS Ratio Change, Impacting Shareholders and Trading Price
In the latest development from Lufax Holding Ltd, a significant change in the ratio of its American Depositary Shares (“ADSs”) to its ordinary shares has been announced. This change, set to take effect on or about December 15, 2023, will see the current ADS Ratio of two (2) ADSs to one (1) ordinary share transition to a new ADS Ratio of one (1) ADS to two (2) ordinary shares.
For current ADS holders, this change will have the same effect as a one-for-four reverse ADS split. On the Effective Date, holders of ADSs in the Direct Registration System (“DRS”) and in the Depository Trust Company (“DTC”) will have their ADSs automatically exchanged, with every four (4) existing ADSs being exchanged for one (1) new ADS.
It’s important to note that this change in the ADS Ratio will not impact Lufax’s underlying ordinary shares, and no ordinary shares will be issued or cancelled in connection with the change. Lufax’s ADSs will continue to be traded on the New York Stock Exchange under the symbol “LU.” As a result of the change in the ADS Ratio, the ADS trading price is expected to increase proportionally, although the Company cannot guarantee the exact impact on the trading price.
Lufax, as a leading financial services enabler for small business owners in China, offers financing products designed to address the specific needs of small business owners. With established relationships with 91 financial institutions in China as funding and credit enhancement partners, Lufax has been a key player in the industry for over three years.
In light of this announcement, it’s important to consider the forward-looking statements made by Lufax. The Company’s goals, strategies, future business development, financial condition, and results of operations are all aspects that are subject to known or unknown risks, uncertainties, and other factors that are difficult to predict and may be beyond the Company’s control.
Overall, this change in the ADS Ratio represents a significant development for Lufax and its shareholders, and it will be interesting to see how the transition unfolds in the coming weeks.