#United States #Beijing #EV Charging #ADS Ratio #NaaS Technology

NaaS Technology Inc. Announces Change in ADS Ratio

NaaS Technology Inc. (Nasdaq: NAAS), the pioneering U.S.-listed electric vehicle (EV) charging service company based in China, has unveiled its plans to modify the ratio of its American Depositary Shares (ADSs) relative to its Class A ordinary shares. The existing ADS Ratio will shift from 1 ADS for 800 Class A shares to a new ratio of 1 ADS for 3,200 Class A ordinary shares. This transition is viewed as a one-for-four reverse ADS split.

The alteration is part of a broader strategy aimed at enhancing the market perception of the company’s stock through the adjustment of its ADS structure. This change is anticipated to take effect on or around July 30, 2025, as per U.S. Eastern Time, following a post-effective amendment to the ADS Registration Statement on Form F-6, which will be filed with the Securities and Exchange Commission (SEC).

Impact on Shareholders

For shareholders holding EDS, this restructuring will necessitate the surrender and exchange of every four existing ADSs for a single new ADS. The process of exchanging the current ADSs for the new ones will be administered by JPMorgan Chase Bank, N.A., serving as the depositary bank for the ADS program. It is essential to note that fractional new ADSs will not be issued; instead, these fractions will be aggregated, sold, and the net cash proceeds allocated to the relevant ADS holders.

Expected Market Response

Interestingly, while the change in the ADS Ratio is projected to result in a proportional increase in the trading price of the ADS, the company has specified that it cannot guarantee that the price post-change will equal or exceed four times the current price. This uncertainty illustrates the volatility inherent in the market and the various factors that can influence stock prices.

NaaS Technology Inc., a subsidiary of Newlinks Technology Limited, is at the forefront of the transformation in the EV sector within China. By utilizing advanced technology, it matches charging supply with demand, aiming to provide users with a streamlined and efficient charging experience. The company is recognized for its significant contributions to the new energy asset operation sector across the country.

Strategic Amendments

In conjunction with the change in ADS Ratio, NaaS has agreed to amend the existing deposit agreement, which is crucial for aligning it with current standards and incorporating the new ADS Ratio adjustment. This progress marks a significant step towards enhancing operational and market flexibility.

For investors and stakeholders, these developments send a strong message about NaaS Technology Inc.’s commitment to adapting to market needs and enhancing shareholder value in a rapidly evolving industry. While the focus remains on improving operational efficiencies and profitability for charging station operators, this move underscores a forward-thinking approach to navigating the dynamic landscape of the EV charging sector.

Conclusion

In conclusion, NaaS Technology Inc.'s announcement regarding the adjustment in its ADS Ratio reflects its broader ambition to not only streamline its operations but also enhance shareholder appeal in an increasingly competitive market. As the EV charging sector continues to grow, the company is positioning itself strategically to take advantage of future opportunities. Stakeholders are advised to stay tuned for further updates as the implementation date approaches, and to consider how this development might influence their investment strategies moving forward.