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BEIJING - NaaS Technology Inc. (NASDAQ: NAAS), a pioneer in the electric vehicle (EV) charging service sector in China, has announced a revision to the ratio of its American Depositary Shares (ADSs) to Class A ordinary shares. The company, currently trading at $0.50 per share, has seen its stock decline by 97% over the past year according to InvestingPro data. The adjustment will take effect on April 28, 2025, shifting from one ADS representing 200 Class A ordinary shares to one ADS for 800 Class A ordinary shares.
For shareholders, this modification operates similarly to a one-for-four reverse ADS split. Record holders of the company’s ADSs at the close of business on the effective date will need to exchange every four existing ADSs for one new ADS. JPMorgan Chase Bank, N.A., the depositary bank for NaaS’s ADS program, will facilitate this exchange. The company’s ADSs will maintain their listing on the Nasdaq Stock Market under the ticker "NAAS."
No fractional ADSs will be issued when the new ADS ratio is implemented. Instead, JPMorgan Chase Bank will aggregate fractional entitlements, sell them, and distribute the net cash proceeds (after fees, taxes, and expenses deduction) to the relevant ADS holders. The company has stated that the ratio change will not affect the underlying Class A ordinary shares, with no issuance or cancellation of shares accompanying the adjustment.
The anticipated result of the new ADS ratio is a proportional increase in the trading price of the ADSs. However, NaaS has indicated that it cannot guarantee the post-adjustment trading price will be exactly four times the price prior to the change. InvestingPro analysis shows the stock has experienced significant volatility, with a beta of 1.84, suggesting higher price fluctuations compared to the broader market. Get access to 18 additional ProTips and comprehensive analysis with an InvestingPro subscription.
NaaS Technology Inc., a subsidiary of Newlinks Technology Limited, is recognized as a leading provider of new energy asset operation services in China. The company focuses on matching charging supply with demand through advanced technology, aiming to deliver an efficient and intelligent EV charging experience. It also enables charging stations and their operators to enhance operations and profitability. Recent financial data from InvestingPro reveals the company’s revenue reached $43.24M in the last twelve months, with a gross profit margin of 32.29%. However, the company faces challenges with its current ratio of 0.66, indicating potential liquidity concerns. Access the comprehensive Pro Research Report for deeper insights into NaaS’s financial health and growth prospects.
This news is based on a press release statement from NaaS Technology Inc., which contains forward-looking statements subject to risks and uncertainties, including changes in technology, industry growth, market acceptance, intellectual property protection, executive and personnel retention, the impact of COVID-19, U.S.-China trade relations, currency exchange fluctuations, financing capabilities, partnerships, government regulations, and broader economic conditions.
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