ORIX Corporation (NYSE:IX), a diversified financial services group based in Tokyo, has announced a change in the ratio of its American Depositary Shares (ADSs) to common shares. The adjustment aims to improve trading liquidity and broaden the company's shareholder base, particularly in the United States.
According to InvestingPro data, ORIX maintains strong financial health with a current ratio of 4.11 and has maintained dividend payments for 34 consecutive years, demonstrating its commitment to shareholder value.
Previously, one ORIX ADS was equivalent to five common shares. As of February 27, 2025, the ratio will change to a one-to-one basis, meaning one ADS will represent a single common share. This change is expected to make ORIX's ADSs more accessible and attractive to investors by lowering the investment threshold. The new ratio will take effect from February 28, 2025, which will be the first trading day under the new arrangement.
ORIX has been expanding its global presence and now operates in around 30 countries and regions with a workforce of approximately 34,000. The company's activities span a wide range of sectors, including financing and investment, life insurance, banking, asset management, real estate, and more. With a P/E ratio of 9.42 and revenue growth of 7.49% in the last twelve months, ORIX shows promising financial metrics.
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The decision to alter the ADS-to-share ratio was made during an Executive Committee meeting on December 3, 2024, reflecting ORIX's proactive approach to enhancing shareholder value and market presence, particularly on the New York Stock Exchange where its ADSs are listed.
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In other recent news, ORIX Corporation has announced a series of significant changes in its executive leadership and organizational structure, including the appointment of Makoto Inoue as Chairperson and CEO, and Hidetake Takahashi as President and COO, effective January 1, 2025. Additionally, the company has reported strong financial results for the first half of its fiscal year ending March 2025, with a net income of 182.9 billion yen, a 42.8% increase year-over-year.
ORIX has also disclosed progress on its share repurchase program, acquiring 2,189,300 common shares in November 2024, contributing to a total cost of approximately 7.32 billion yen. Furthermore, the company completed its restricted stock disposal, with 141,300 shares of common stock disposed of at 3,363 yen per share, resulting in a total disposal value of 475,191,900 yen.
These are recent developments as ORIX continues to adapt to the dynamic global market and enhance its ability to innovate and make a sustainable impact on development worldwide. The company maintains robust financial health with a current ratio of 4.11, according to InvestingPro analysis, indicating strong liquidity to support its strategic initiatives.
However, it should be noted that the company's future expectations involve risks and uncertainties, as stated by ORIX's Investor Relations and Sustainability Department. Despite these challenges, ORIX remains focused on strategic growth and asset management, as evidenced by these recent developments.
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