As some of you have noticed, the price of TAL Education Group (TAL) has dropped to one-sixth of its yesterday close and is now trading around 29. The move is the result of a change in the ratio of native shares to ADR shares. Technically, its not a stock split, but functionally it’s as good as.
Here’s how the company described the move in its official announcement.
TAL Education Group (“TAL” or the “Company”) (NYSE: TAL), a leading K-12 after-school tutoring services provider in China, today announced that it will change its American depositary share (“ADS”) to Class A common share (“Share”) ratio from one (1) ADS representing two (2) Shares to three (3) ADSs representing one (1) Share.
The value of your position is the same as it was, and you don’t need to take any action.