Kuke Announces Plan to Implement ADS Ratio Change
Kuke Music Holding (NYSE: KUKE) has announced plans to modify its American Depositary Shares (ADS) ratio from 1:1 to 1:10, effectively implementing a one-for-ten reverse ADS split. The change is scheduled to take effect around March 13, 2025.
Under this new arrangement, shareholders will need to exchange every ten existing ADSs for one new ADS. Deutsche Bank Trust Company Americas, the depositary bank, will manage the exchange process. Any fractional ADSs will be sold, with net proceeds distributed to affected shareholders.
The ratio change will not impact the company's underlying Class A ordinary shares, and KUKE will continue trading on the NYSE under the same symbol. While the ADS trading price is expected to increase proportionately, the company cannot guarantee the new price will equal or exceed ten times the pre-split trading price.
Kuke Music Holding (NYSE: KUKE) ha annunciato piani per modificare il rapporto delle sue American Depositary Shares (ADS) da 1:1 a 1:10, implementando di fatto uno split inverso delle ADS di uno a dieci. Il cambiamento è previsto per entrare in vigore intorno al 13 marzo 2025.
Con questo nuovo accordo, gli azionisti dovranno scambiare ogni dieci ADS esistenti per una nuova ADS. Deutsche Bank Trust Company Americas, la banca depositaria, gestirà il processo di scambio. Eventuali ADS frazionari saranno venduti, con i proventi netti distribuiti agli azionisti interessati.
Il cambiamento del rapporto non influenzerà le azioni ordinarie di Classe A sottostanti della società, e KUKE continuerà a essere quotata al NYSE con lo stesso simbolo. Sebbene si preveda che il prezzo di negoziazione delle ADS aumenti proporzionalmente, la società non può garantire che il nuovo prezzo sarà pari o superiore a dieci volte il prezzo di negoziazione prima dello split.
Kuke Music Holding (NYSE: KUKE) ha anunciado planes para modificar su relación de American Depositary Shares (ADS) de 1:1 a 1:10, implementando efectivamente un split inverso de ADS de uno por diez. El cambio está programado para entrar en vigor alrededor del 13 de marzo de 2025.
Bajo este nuevo acuerdo, los accionistas deberán intercambiar cada diez ADS existentes por una nueva ADS. Deutsche Bank Trust Company Americas, el banco depositario, gestionará el proceso de intercambio. Cualquier ADS fraccionaria será vendida, y los ingresos netos se distribuirán a los accionistas afectados.
El cambio de relación no afectará las acciones ordinarias de Clase A subyacentes de la empresa, y KUKE continuará cotizando en el NYSE bajo el mismo símbolo. Si bien se espera que el precio de negociación de las ADS aumente proporcionalmente, la empresa no puede garantizar que el nuevo precio sea igual o supere diez veces el precio de negociación anterior al split.
Kuke Music Holding (NYSE: KUKE)는 자사의 미국 예탁 주식(ADS) 비율을 1:1에서 1:10으로 수정할 계획을 발표했습니다. 이는 사실상 10대 1의 역 분할을 시행하는 것입니다. 변경 사항은 2025년 3월 13일경에 발효될 예정입니다.
이 새로운 arrangement에 따라 주주들은 기존의 10개 ADS를 1개의 새로운 ADS로 교환해야 합니다. 예탁 은행인 Deutsche Bank Trust Company Americas가 교환 과정을 관리할 것입니다. 모든 분수 ADS는 판매되며, 순수익은 해당 주주에게 분배됩니다.
비율 변경은 회사의 기본 클래스 A 보통주에 영향을 미치지 않으며, KUKE는 동일한 기호로 NYSE에서 계속 거래됩니다. ADS 거래 가격이 비례적으로 증가할 것으로 예상되지만, 회사는 새로운 가격이 분할 전 거래 가격의 10배에 해당하거나 이를 초과할 것이라고 보장할 수 없습니다.
Kuke Music Holding (NYSE: KUKE) a annoncé des plans pour modifier le ratio de ses American Depositary Shares (ADS) de 1:1 à 1:10, mettant en œuvre de facto un reverse split des ADS d'un pour dix. Le changement devrait entrer en vigueur autour du 13 mars 2025.
Dans le cadre de ce nouvel arrangement, les actionnaires devront échanger chaque dix ADS existantes contre une nouvelle ADS. Deutsche Bank Trust Company Americas, la banque dépositaire, gérera le processus d'échange. Les ADS fractionnaires seront vendues, et les produits nets seront distribués aux actionnaires concernés.
Le changement de ratio n'affectera pas les actions ordinaires de classe A sous-jacentes de l'entreprise, et KUKE continuera à être négocié sur le NYSE sous le même symbole. Bien que le prix de négociation des ADS devrait augmenter proportionnellement, l'entreprise ne peut garantir que le nouveau prix sera égal ou supérieur à dix fois le prix de négociation avant le split.
Kuke Music Holding (NYSE: KUKE) hat Pläne angekündigt, das Verhältnis seiner American Depositary Shares (ADS) von 1:1 auf 1:10 zu ändern, was effektiv einen Eins-zu-Zehn-Rückwärtssplit der ADS umsetzt. Die Änderung soll voraussichtlich am 13. März 2025 in Kraft treten.
Unter dieser neuen Regelung müssen Aktionäre jede zehn bestehenden ADS gegen eine neue ADS eintauschen. Die Depotbank Deutsche Bank Trust Company Americas wird den Austauschprozess verwalten. Alle Bruch-ADS werden verkauft, und die Nettoerlöse werden an die betroffenen Aktionäre verteilt.
Die Änderung des Verhältnisses hat keine Auswirkungen auf die zugrunde liegenden Stammaktien der Klasse A des Unternehmens, und KUKE wird weiterhin unter demselben Symbol an der NYSE gehandelt. Obwohl erwartet wird, dass der Handelspreis der ADS proportional steigen wird, kann das Unternehmen nicht garantieren, dass der neue Preis gleich oder höher als das Zehnfache des Handelspreises vor dem Split sein wird.
- Expected proportional increase in ADS trading price
- Maintains NYSE listing status
- Reverse ADS split could indicate attempt to maintain NYSE listing requirements
- No guarantee new ADS price will maintain proportional value post-split
Insights
Kuke's announcement of a 1:10 reverse ADS split represents a significant structural change with important implications for investors. This move is typically employed by micro-cap companies facing exchange compliance pressures. With Kuke's current share price at just
The mechanics of this split will require investors to exchange every ten existing ADSs for one new ADS, with fractional entitlements being sold and cash distributed to affected holders. While mathematically neutral in terms of ownership value, reverse splits carry significant signaling effects in the market. The anticipated post-split price of approximately
From a market structure perspective, the reduced float will likely decrease liquidity, potentially widen bid-ask spreads, and affect trading dynamics. The absence of accompanying positive operational developments in this announcement is notable - reverse splits alone don't address underlying business fundamentals. Historical patterns show companies implementing reverse splits without addressing core business challenges typically underperform the broader market in subsequent periods.
This financial engineering move primarily serves compliance purposes rather than reflecting improved business prospects, making it a concerning development for current shareholders despite its technical neutrality.
Beijing, March 03, 2025 (GLOBE NEWSWIRE) -- Kuke Music Holding Limited (“Kuke” or the “Company”) (NYSE: KUKE), a leading classical music service platform in China, today announced that, it will change the ratio of its American depositary shares (“ADSs”) to its Class A ordinary shares (the “ADS Ratio”) from one (1) ADS representing one (1) Class A ordinary shares to one (1) ADS representing ten (10) Class A ordinary shares.
For the Company’s ADS holders, the change in the ADS Ratio will have the same effect as a one-for-ten reverse ADS split. A post-effective amendment to the ADS Registration Statement on Form F-6 will be filed with the SEC to reflect the change in the ADS Ratio. The Company anticipates that the change in the ADS Ratio will be effective on or about March 13, 2025 (U.S. Eastern Time), subject to the effectiveness of the post-effective amendment to the ADS Registration Statement on Form F-6 on or before that date.
Each ADS holder of record at the close of business on the date when the change in ADS Ratio is effective will be required to surrender and exchange every ten (10) existing ADSs then held for one (1) new ADS. Deutsche Bank Trust Company Americas, as the depositary bank for the Company’s ADS program, will arrange for the exchange of the current ADSs for the new ones.
No fractional new ADSs will be issued in connection with the change in the ADS Ratio. Instead, fractional entitlements to new ADSs will be aggregated and sold by the depositary bank and the net cash proceeds from the sale of the fractional ADS entitlements (after deduction of fees, taxes and expenses, where applicable) will be distributed to the applicable ADS holders by the depositary bank. The change in the ADS Ratio will have no impact on the Company’s underlying Class A ordinary shares, and no Class A ordinary shares will be issued or cancelled in connection with the change in the ADS Ratio. The Company’s ADSs will continue to be traded on the New York Stock Exchange under the ticker symbol “KUKE.”
As a result of the change in ADS Ratio, the ADS trading price is expected to increase proportionately, although the Company can give no assurance that the ADS trading price after the change in the ADS Ratio will be equal to or greater than ten times the ADS trading price before the change.
About Kuke Music Holding Limited (NYSE: KUKE)
Kuke is a leading classical music service platform in China encompassing the entire value chain from content provision to music learning services, with approximately 3 million audio and video music tracks. By collaborating with its strategic global business partner Naxos, the largest independent classical music content provider in the world, the foundation of Kuke’s extensive classical music content library is its unparalleled access to more than 900 top-tier labels and record companies. Leveraging its market leadership in international copyrighted classical music content, Kuke provides highly scalable classical music licensing services to various online music platforms, and classical music subscription services to over 800 universities, libraries and other institutions across China. In addition, it has hosted Beijing Music Festival (“BMF”), the most renowned music festival in China, for 24 consecutive years. Through KUKEY, the Company’s proprietary smart music learning solutions, Kuke aims to democratize music learning via technological innovation, bring fascinating music content and professional music techniques to more students, and continuously improve the efficiency and penetration of music learning in China. For more information about Kuke, please visit https://ir.kuke.com/. Kuke routinely posts important updates on its website.
Forward-looking Statements
This announcement contains forward looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Statements that are not historical facts, including but not limited to statements about Kuke’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including those in Kuke’s registration statement filed with the Securities and Exchange Commission. Further information regarding these and other risks is included in Kuke’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Kuke undertakes no obligation to update any forward-looking statement, except as required under applicable law.
For further information, please contact:
Kuke Music Holding Limited
Investor Relations
Email: ir@kuke.com
FAQ
When will Kuke's ADS ratio change take effect?
What is the new ADS ratio for Kuke Music (NYSE: KUKE)?
How will fractional shares be handled in Kuke's ADS ratio change?
Will Kuke's ADS ratio change affect its underlying Class A ordinary shares?
