Sequans Communications Announces ADS Ratio Change to 1:100

Sequans Communications is changing its ADS ratio from 1:10 to 1:100, effective September 17, 2025. The move aims to enhance market appeal, improve regulatory compliance, and increase operational efficiency. The change will result in a higher per-ADS price and is expected to make Sequans' ADS more attractive to institutional investors. Holders will not need to take action for Direct Registration System and DTC accounts, while beneficial holders may contact their bank or broker for more information.

Sequans Communications (NYSE: SQNS) has announced a notable adjustment to its American Depositary Shares (ADS) ratio. The company will modify its ADS to ordinary shares ratio from 1:10 to 1:100, effective September 17, 2025 [1].

This change follows Sequans' July 2025 capital increase and aims to enhance operational efficiency, attract institutional investors, and ensure NYSE listing compliance. The ADS ratio change will effectively work as a 1-for-10 reverse ADS split, with fractional ADSs being settled in cash. The company's ordinary shares and NYSE ticker symbol "SQNS" remain unchanged.

The primary objectives of the ADS ratio change are:

1. Operational Efficiency: By reducing the number of outstanding ADSs, the company can streamline its operations.
2. Institutional Appeal: The higher per-ADS price may attract investors with minimum price thresholds, broadening the company's institutional investor base.
3. Regulatory Compliance: The change ensures Sequans meets NYSE listing requirements.

For investors, this adjustment is primarily administrative. Current ADS holders will receive 1 new ADS for every 10 they currently hold, with cash payments for fractional shares. The trading price per ADS is expected to increase proportionally, though the company disclaims any guarantee of this outcome.

Sequans Communications, known for its innovative cellular IoT semiconductor solutions and pioneering Bitcoin treasury strategy, is executing this technical adjustment to simplify operations following its capital increase. The move does not change the company's underlying business fundamentals, market capitalization, or proportional ownership stakes. It is a technical adjustment aimed at enhancing the company's appeal to institutional investors and ensuring regulatory compliance.

Holders in the Direct Registration System and DTC will have their ADSs automatically exchanged and need not take any action. Beneficial holders may contact their bank, broker, or nominee for more information. ADS holders with ADSs held in certificate form will be required to exchange their certificates for new book-entry ADSs at a rate of 10 old ADSs for 1 new ADS.

The change is expected to make Sequans' ADS more attractive to institutional investors, potentially increasing the company's market appeal. The trading price per ADS is expected to increase proportionally, although the company cannot guarantee this outcome.

References:
[1] https://www.stocktitan.net/news/SQNS/sequans-announces-ads-ratio-eu7st5ut8d5g.html