Veon (NASDAQ:VEON) stock appears to be rocketing over 900% higher on Wednesday morning but that’s only due to an American Depositary Receipt (ADR) ratio change.
This ratio change has holders of the company’s ADRs required to submit them back to the company. This will see the company issue new ADRS with the ratio being one new ADR for every 25 old ADRs that an investor holds.
This is the equivalent of Veon undergoing a one-for-25 reverse stock split. The company also notes that no new shares of VEON stock will be issued as part of the ADR ratio change.
Investors will note that VEON stock was originally going to go through this ratio change earlier this week. However, the new CUSIP number for the shares wasn’t ready in time. That resulted in the change being delayed to today.
What’s Behind The VEON Stock Ratio Change?
Veon reminds investors that this ADR ratio change is the result of it needing to increase the price of its stock for listing purposes. The company’s shares were previously trading below the $1 minimum price required to list on the Nasdaq.
With the ratio change today, VEON stock is now sitting at around $18 per share in pre-market trading. That’s well above the minimum requirement and should allow shares to remain on the exchange.
VEON stock is up 905% as of Wednesday morning due to the ratio change.
Investors looking for more of the latest stock market news are in luck!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Wednesday! That includes the biggest pre-market stock movers this morning as well as the latest news concerning XPeng (NYSE:XPEV) and a stock market crash warning. All of that news is ready to go at the following links!
More Wednesday Stock Market News
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- Why Is Xpeng (XPEV) Stock Down 8% Today?
- Stock Market Crash Alert: Mark Your Calendars for March 10
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.