Investors who have been on the road with Chinese travel website Ctrip.com (CTRP) will soon have a share ratio change.
The company announced that it will change the ratio of its American Depositary Shares to ordinary shares from one ADS representing two ordinary shares to one ADS representing one ordinary share, effective April 10, 2006.
Ctrip's ADS holders as of April 7, 2006 will receive one additional ADS for every ADS held at the close of business on April 10, 2006. The effect on the ADS price and ADS count will take place on April 11, 2006.
For Ctrip's ADS holders, this ratio change will have the same effect as a two-for-one ADS split. There will be no change to Ctrip's underlying ordinary shares. Furthermore, no action is required by ADS holders to effect the ratio change.
