NetEase’s shares surged 2.8% in premarket trading on Friday. The stock surge outpaced Nasdaq 100 premarket gainers. This surge was seen when a China-based Internet technology company announced a ratio change for the U.S. listed shares, as stated by MarketWatch.
- The 5-for-1 stock split means each American Depositary Share (ADS) will stand for five ordinary shares. Stock split will take place from Oct 1. This contradicts with the current ratio according to which one ADS will represent 25 ordinary shares.
- The trading of ADS will start by underpinning split-adjusted on the Nasdaq exchange from Oct 2.
- The stock was closed at $470.01 price on Thursday.
The stock moved up 53.3% year to date outperforming major indexes. The gain on Nasdaq 100 was recorded to be 6.0%, while the Standard and Poor index has pinned on 3.9%.