Renren Considers Change in ADS Ratio to Regain Compliance With NYSE
Shares in Renren Inc. (NYSE: RENN) dipped to 83 cents apiece Friday morning, 2 cents below yesterday’s close, after the company reported a possible change in its ADS ratio after receiving a notice of non-compliance with the listing rules of the NYSE.
In a statement posted Thursday evening after markets closed, the Beijing-based company said it has been non-compliant with the rules of the stock exchange as its securities have been trading below the price of $1 for 30 consecutive days.
Renren said it hopes to regain compliance with the NYSE by changing the number of ordinary shares represented by one American depositary share. It added that it will make further announcements before implementing the change in the ratio.
The company used to operate China’s once-popular Facebook-like social network, renren.com, and has shifted to an auto business last year. It also has businesses outside of China, including the Trucker Path app and its SaaS business in the U.S.
The stock of Renren’s subsidiary, Kaixin Auto Holdings (Nasdaq: KXIN), dropped 2 percent to $1.60 per ADS Friday morning.
Renren has six months to regain compliance with the NYSE.