OneConnect Financial Technology Co., Ltd. (“OneConnect” or the “Company“) (NYSE:OCFT), a leading technology-as-a-service provider for financial institutions in China, today announced that it will change the ratio of its American depositary shares (“ADSs“) representing its ordinary shares from one (1) ADS representing three (3) ordinary shares to one (1) ADS representing thirty (30) ordinary shares (the “Ratio Change“). The Ratio Change will take effect at the open of trading of the New York Stock Exchange (the “NYSE“) on December 12, 2022 (U.S. Eastern Time).
For OneConnect’s ADS holders, the change in the ADS ratio will have the same effect as a one-for-ten reverse ADS split. There will be no change to the Company’s ordinary shares. ADSs outstanding on the effective date will need to be exchanged for new ADSs, with every ten (10) existing ADSs being cancelled in exchange for the issuance of one (1) new ADS by the depositary bank as of the effective date for the Ratio Change. OneConnect’s ADSs will continue to be traded on the NYSE under the symbol “OCFT”.
No fractional new ADSs will be issued in connection with the change in the ADS ratio. Instead, fractional entitlements to new ADSs will be sold by the depositary bank and the net cash proceeds from the sale of the fractional ADS entitlements will be distributed to the applicable ADS holders by the depositary bank, in each case in accordance with the depositary bank’s then current procedures and practices and after any deductions as provided in the deposit agreement between the Company and the depositary bank for the ADSs.
As a result of the Ratio Change, the ADS price is expected to increase proportionally, although the Company can give no assurance that the ADS price after the Ratio Change will be equal to or greater than ten times the ADS price before the change.