- So-Young International (SY, Financial) delays its planned ADS ratio change, originally scheduled for June 30, 2025.
- The revised ADS ratio will be 1 ADS representing 15 Class A ordinary shares, aimed at effectively consolidating shares.
- The delay allows more time for preparation with a new timeline yet to be announced.
So-Young International Inc. (Nasdaq: SY), a leading aesthetic treatment platform in China, has announced an extension of its previously planned change to the American Depositary Shares (ADS) ratio. The company intended to adjust the ratio from thirteen (13) ADSs representing ten (10) Class A ordinary shares to one (1) ADS representing fifteen (15) Class A ordinary shares, effectively executing a reverse ADS split. Originally set to take effect on June 30, 2025, this change has been postponed to provide additional time for preparation.
The modification will automatically be processed through the depositary bank, with existing ADSs being canceled and new ones issued. There will be no issuance of fractional new ADSs. Instead, fractional entitlements will be sold, and the net cash proceeds will be distributed to the relevant ADS holders. The ADS price is anticipated to increase proportionally following the change; however, So-Young notes there is no guarantee that the price will adjust as expected.
For shareholders, the ADS ratio change means that there will be no need for any action, as the exchange process will be conducted automatically. The delay in the implementation suggests that the company may face underlying preparation challenges, although it has not disclosed specific details regarding these issues. The company plans to announce a new timeline once it's determined.
