Bread Financial Holdings: So-Young International Adjusts ADS Ratio to Strengthen Market Position
- So-Young International postpones ADS ratio adjustment originally set for June 30, 2025, to prepare adequately.
- The new ADS ratio will change from thirteen ADSs for ten Class A shares to one ADS for fifteen.
- This adjustment aims to optimize capital structure and enhance market position without impacting underlying Class A shares.
So-Young International Adjusts ADS Ratio to Enhance Market Position
So-Young International Inc., a leading platform in the Chinese aesthetic treatment market, announces a revision to the effective date of its planned adjustment in the ratio of American depositary shares (ADSs) to Class A ordinary shares. Initially scheduled for June 30, 2025, the company decides to postpone this change to allow more time for proper preparations. The intended modification shifts the ratio from thirteen ADSs representing ten Class A shares to one ADS representing fifteen Class A shares. This adjustment, which effectively acts as a reverse ADS split for current holders, is designed to streamline the company’s share structure without impacting the underlying Class A ordinary shares.
The automatic exchange process means that existing ADS holders will not need to take any action on the effective date. The depositary bank will manage the cancellation of old shares and the issuance of new ones. However, it is important to note that fractional new ADSs will not be issued; instead, any fractional entitlements will be aggregated and sold, with the net proceeds distributed to ADS holders after accounting for related fees and taxes. So-Young anticipates that this change in the ADS ratio will lead to an increase in the ADS price proportional to the adjustment. Nevertheless, the company acknowledges that it cannot guarantee that the post-adjustment price will match or exceed the proportional price based on the pre-adjustment value.
As a prominent player in the medical aesthetics industry, So-Young positions itself for long-term growth through its platform that connects consumers with aesthetic treatments and online booking services. The adjustment of the ADS ratio reflects the company's commitment to optimizing its capital structure and enhancing its market presence. This strategic move comes at a time when the medical aesthetic sector is expanding rapidly in China, driven by increasing consumer demand for aesthetic treatments. By taking these steps, So-Young aims to enhance shareholder value and strengthen its competitive position in this burgeoning market.
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