Ctrip.com, China’s biggest online travel company, has changed the ratio of its American depositary shares (ADS) to give holders a two-for-one ADS split. Holders of the ADS received one additional ADS for each ADS they owned on January 19 at the end business on January 20. Each ADS will now represent one-quarter of an ordinary share instead of the previous one-half of an ordinary share.
Splits are neutral events: shareholders wind up with twice as many shares but each share is priced at only half its former price.
The new price for the Ctrip.com ADS went into effect on January 21. I’ve adjusted the purchase price for my January 5 buy of these shares for the Jubak Picks 50 portfolio accordingly.