Zhihu Inc., a prominent online content community in China, has announced its intention to adjust the ratio of its American depositary shares (ADSs) to Class A ordinary shares. The change, which is set to take effect around May 10, 2024, will alter the current ratio from two ADSs representing one Class A ordinary share to one ADS representing three Class A ordinary shares. This adjustment is equivalent to a one-for-six reverse ADS split for the company's ADS holders. As a result, shareholders will be required to exchange six existing ADSs for one new ADS. The exchange will be facilitated by JPMorgan Chase Bank, N.A., the depositary bank for Zhihu's ADS program. The ADSs will continue to trade...Show More

Zhihu Inc., a prominent online content community in China, has announced its intention to adjust the ratio of its American depositary shares (ADSs) to Class A ordinary shares. The change, which is set to take effect around May 10, 2024, will alter the current ratio from two ADSs representing one Class A ordinary share to one ADS representing three Class A ordinary shares. This adjustment is equivalent to a one-for-six reverse ADS split for the company's ADS holders. As a result, shareholders will be required to exchange six existing ADSs for one new ADS. The exchange will be facilitated by JPMorgan Chase Bank, N.A., the depositary bank for Zhihu's ADS program. The ADSs will continue to trade on the New York Stock Exchange under the ticker symbol 'ZH'. No new fractional ADSs will be issued; instead, fractional entitlements will be sold, and the net proceeds will be distributed to the ADS holders after deductions. The underlying Class A ordinary shares will remain unaffected by this change, with no shares being issued or cancelled. Zhihu anticipates that the ADS trading price may proportionately increase post-change, but there is no guarantee that the post-change price will be equal to or greater than six times the pre-change price. The company has made this announcement in accordance with the U.S. Private Securities Litigation Reform Act of 1995, which includes forward-looking statements subject to risks and uncertainties.