New Oriental announces a 10-for-1 common stock split

On March 8th, China-based private education service provider New Oriental Education & Technology Group(NYSE: EDU and SEHK: 9901) announced a 10-for-1 common stock split, which is effective as of March 10th.

According to the announcement, each common share (whether issued or unissued) of par value of US$0.01 each in the share capital of New Oriental will be subdivided into ten common shares, with a par value of US$0.001 each, such that following such subdivision, the authorized share capital of the company shall be US$3,000,000 divided into 3,000,000,000 shares with a par value of US$0.001 each.

Before this, New Oriental has announced a 4-for-1 stock split on July 18th, 2011, which was effective as of August 18th the same year.

And on July 27th 2017, TAL also announced a 6-for-1 stock split. Holders of TAL ADSs of record as of the close of business on August 8th, 2017, will receive five additional ADSs for every one ADS held on that date. For TAL's ADS holders, this ratio change will have the same effect as a 6-for-1 ADS split.

Analyzed by Stock Split History, when a company such as New Oriental splits its shares, the market capitalization before and after the split takes place remains stable, meaning the shareholder now owns more shares but each is valued at a lower price per share. Often, however, a lower-priced stock on a per-share basis can attract a wider range of buyers.