Shares of NetEase Inc. (NTES) surged 2.8% in premarket trading Friday, enough to pace all of the Nasdaq 100 early gainers, after the China-based internet technology company announced a ratio change for its U.S.-listed shares which effectively results in a 5-for-1 stock split. The company said each American depositary share (ADS) will represent five ordinary shares, effective Oct. 1, compared with the current ratio of one ADS for 25 ordinary shares. The ADS will start trading on a split adjusted basis on the Nasdaq exchange on Oct. 2. The stock closed Thursday at $470.01, which would be adjusted to $94.00 after the split. The stock has run up 53.3% year to date through Thursday, while the Nasdaq 100 has gained 6.0% and the S&P 500 has tacked on 3.9%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 18, 2020 06:39 ET (10:39 GMT)
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