Shares of New Oriental Education & Technology Group soared nearly 836% after announcing a 1-for10 reverse stock split, according to a report by Seeking Alpha on Friday.
- New Oriental shares were bought and sold at $11.40 at approximately 9:40 a.m. ET. The stock had closed at $1.19 on Thursday.
- The Chinese educational services firm disclosed on March 28 that it seeks to change its American Depository Share to a common share ratio from 1-to-1 to 1-to-10.
- For New Oriental’s ADS holders, the change in the ADS ratio will have a similar impact as a 1-to-10 reverse ADS split.
Deutsche Bank Trust Company Americas, as the depositary bank for New Oriental’s ADS scheme, will organize the exchange of the current ADSs for the new ones. EDU: NYSE is up +836%, Pre-market trading.