NaaS to Change ADS Ratio to 1 ADS:320 Class A Shares from 1 ADS:800 Class A Shares

NaaS plans to change its American Depositary Shares (ADS) ratio to one ADS to 3,200 Class A ordinary shares from the current ratio of one ADS to 800 Class A ordinary shares. This change will have the same effect as a one-for-four reverse ADS split and will be effective on or about July 30.

NaaS Technology Inc. (Nasdaq: NAAS), the first U.S.-listed electric vehicle (EV) charging service company in China, has announced a significant change to its American Depositary Shares (ADS) ratio. The company plans to modify the ratio from 1 ADS to 800 Class A ordinary shares to 1 ADS to 3,200 Class A ordinary shares, effectively implementing a 1-for-4 reverse ADS split. This change is expected to take effect on July 30, 2025 [1].

The reverse ADS split aims to boost the share price without altering the company's underlying business fundamentals or value. Shareholders will exchange every four existing ADSs for one new ADS, with fractional shares being aggregated, sold, and proceeds distributed to affected shareholders. This adjustment will mechanically increase the trading price of each ADS by approximately fourfold, although the company acknowledges there's no guarantee the post-split price will maintain this exact mathematical relationship [1].

The change in the ADS ratio will not affect the company's underlying Class A ordinary shares, cash position, or total market capitalization. No actual Class A ordinary shares will be issued or cancelled—this is purely a change in the packaging of shares for U.S. investors. The timing of the announcement suggests compliance considerations, as Nasdaq has minimum price requirements of $1.00 per share. Companies trading below this threshold risk delisting notices. While NaaS doesn't explicitly state this as the motivation, reverse splits are common defensive measures to maintain exchange compliance when share prices have declined significantly [1].

The reverse ADS split may also potentially attract institutional investors who have minimum share price thresholds for investment consideration. NaaS Technology Inc. is a subsidiary of Newlinks Technology Limited, a leading energy digitalization group in China. It is a prominent provider of new energy asset operation services, utilizing advanced technology to optimize the charging experience for electric vehicle users and improve the efficiency and profitability of charging stations [2].

NaaS Technology Inc. is currently trading with an average trading volume of 1,011,270 shares, a technical sentiment signal of 'Sell,' and a current market capitalization of $2.7 million [2]. The company's overall stock score reflects its high financial risk due to negative equity and profitability challenges, despite strong revenue growth. Technical analysis indicates bearish trends, while valuation metrics underscore potential overvaluation. However, recent earnings call insights reveal positive shifts towards profitability and efficiency, slightly enhancing the outlook [2].

The reverse ADS split is expected to increase the ADS trading price, potentially bringing the company back into compliance with Nasdaq listing rules and attracting more institutional investors. For a thorough assessment of NAAS stock, investors can refer to the company's latest filings and financial reports [2].

References:
[1] https://www.stocktitan.net/news/NAAS/naa-s-technology-inc-announces-plan-to-implement-ads-ratio-2cmi104xxnku.html
[2] https://www.tipranks.com/news/company-announcements/naas-technology-announces-ads-ratio-change-effective-july-30-2025