JA Solar Holdings has announced that, effective from 10 December, the company's ratio of American Depositary Shares (ADS’s) to ordinary shares will change to reflect one ADS representing five ordinary shares.
The solar cell manufacturer has been operating with a ratio of one ADS share to one ordinary share up to this time. However, after receiving notice on 11 October from the NASDAQ Stock Market that its closing bid price on its ADS for 30 consecutive business days no longer met the requirements for the minimum bid price, JA Solar is looking to boost share price in order avoid delisting.
Each shareholder of record at the close business on 10 December will be required to exchange every five ADSs held for one new ADS. The company maintains that there will be no change to its underlying ordinary shares.
Further details will be provided to NASDAQ and other market participants before 26 November.