CNFinance to change ADS ratio in reverse split equivalent move

Published 15/08/2025, 22:10
CNFinance to change ADS ratio in reverse split equivalent move

GUANGZHOU, China - CNFinance Holdings Limited (NYSE:CNF), a micro-cap financial services provider currently trading at $0.59 per share, announced Friday it plans to change the ratio of its American depositary shares to Class A ordinary shares from 1:20 to 1:200, effectively implementing a one-for-ten reverse ADS split. According to InvestingPro data, the stock has seen significant pressure, declining over 50% in the past six months.

The change, expected to take effect on or about September 5, 2025, will require ADS holders to surrender and exchange every ten existing ADSs for one new ADS. JPMorgan Chase Bank will manage the exchange process as the depositary bank.

No fractional new ADSs will be issued. Instead, fractional entitlements will be aggregated and sold, with net proceeds distributed to applicable ADS holders.

The company’s ADSs will continue trading on the New York Stock Exchange under the ticker symbol "CNF." The change will not impact CNFinance’s underlying Class A ordinary shares, and no shares will be issued or cancelled in connection with the ratio change.

While the ADS trading price is expected to increase proportionally following the change, the company noted it cannot guarantee the post-change price will equal or exceed ten times the pre-change trading price.

CNFinance Holdings Limited describes itself as a home equity loan service provider in China that connects micro- and small-enterprise owners with financing needs to licensed financial institutions through various partnership models.

The information in this article is based on a company press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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