- NetEase, Inc. (NASDAQ: NTES) (HKEX: 9999) — one of China’s leading internet and online game services providers — announced today that it is going to have a 5-for-1 stock split
NetEase, Inc. (NASDAQ: NTES) (HKEX: 9999) — one of China’s leading internet and online game services providers — announced today that it will change the ratio of its American depositary shares (“ADSs”), representing ordinary shares from the current one (1) ADS for every twenty-five (25) ordinary shares to one (1) ADS for every five (5) ordinary shares. Essentially this results in a 5-for-1 stock split. The ADS is going to start trading on a split-adjusted basis on the Nasdaq exchange on October 2.
At the close of business (New York time) on September 30, 2020, shareholders will be entitled to receive four additional ADSs for every ADS held, effective October 1, 2020 at the close of business. There won’t be any changes to NetEase’s ordinary shares and no action by ADS holders is required to effect the ratio change. Existing ADSs will continue to be valid and will not have to be exchanged for new ADSs.
What does NetEase do? NetEase is focused on providing premium online services centered around innovative and diverse content, community, communication and commerce. And the company NetEase develops and operates some of China’s most popular mobile and PC games. Over the last few years, NetEase expanded into international markets including Japan and North America.
Along with its self-developed game content, NetEase partners with other leading game developers like Blizzard Entertainment and Mojang to operate globally renowned games in China. And NetEase’s other innovative service offerings include the intelligent learning services of its majority-controlled subsidiary Youdao (NYSE: DAO); music streaming through its leading NetEase Cloud Music business; and its private-label e-commerce platform Yanxuan.
Disclosure: I own a small amount of NTES in my portfolio