JA Solar pumps up ADS value to avoid delisting
Nov 16 (Reuters) - China-based solar equipment maker JA Solar Holdings Co, faced with delisting in the United States, said it would consolidate its American Depositary Shares, a move that normally would boost the value of the stock.
The company said one ADS will represent five ordinary shares effective Dec. 10. One ADS now represents one ordinary share.
Under Nasdaq rules, securities can be delisted if their share price remains below $1.00 for 30 trading days in a row.
JA Solar shares closed at 70 cents on Thursday on the New York Stock Exchange and have fallen about 60 percent in the last one year. They traded at as much as $26 in 2008.
Rival LDK Solar Co Ltd on Friday received a warning from the New York Stock Exchange that the company's stock may be delisted.
LDK shares closed at 96 cents on Thursday. They are down more than 70 percent in the last one year.
Shares of Chinese solar companies such as Suntech Power Holdings Co Ltd, LDK, JA Solar, Trina Solar Ltd and Yingli Green Energy Holding Co, have plunged in the last three years due to a global supply glut that has sent prices tumbling.
The companies have also been slapped with import duties in the United States and they may have to pay similar charges in Europe.
Suntech, the world's largest panel maker, received a similar notice in September.
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