Investments & Finance

Oatly Announces Plan to Implement ADR Ratio Change

Oatly Group AB (Nasdaq: OTLY) has announced plans to change the ratio of its American Depositary Receipts (ADRs) to ordinary shares. Currently, one ADR represents one ordinary share. After the change, one ADR will represent twenty ordinary shares.

This adjustment functions as a one-for-twenty reverse ADR split for Oatly’s ADR holders. However, this will not impact Oatly’s ordinary shares—no new shares will be issued or canceled as a result. The change is expected to take effect when trading opens on February 18, 2025, on the Nasdaq Global Select Market. Oatly’s ADRs will continue to be traded under the ticker symbol “OTLY.”

Click here to display a historical stock chart of mentioned company in this article.
Learn more in Stockdio’s privacy policy.

No fractional ADRs will be issued due to the change. Instead, any fractional entitlements will be combined and sold by the depositary bank. The proceeds, after deducting fees, taxes, and expenses, will be distributed to the applicable ADR holders. Holders should refer to the Deposit Agreement (filed with the SEC as an exhibit to Oatly’s 2024 Annual Report on Form 20-F) for details on any applicable fees payable to the depositary bank.

As a result of this change, the trading price per ADR is expected to rise proportionally. However, Oatly cannot guarantee that the new ADR price will be exactly twenty times the previous price.

Oatly will report its financial results on February 12, 2025, and will host a conference call and webcast on the same day. Any necessary updates regarding the ADR ratio change will be provided at that time.

Following the announcement, Oatly’s stock price temporarily dropped by up to 25% but has since partially recovered.

The content of this article is intended solely for general editorial reporting and does not constitute financial or investment advice, an offer, a recommendation, or a solicitation to buy or sell financial instruments. The information provided is aimed at a professional audience and should not be used as a basis for investment decisions. It is recommended to consult a professional advisor if needed.

Share

Interviews