SEC FILLINGS DISCLOSED/ Sep 26 (Eastern Time), $Futu Holdings Ltd (FUTU.US)$ Insider Huang River Investment Limited (a wholly-owned subsidiary of Tencent) intended to sell 20.6452 million American Depository Shares (ADS) on Sep 26, with a total market value of approximately $200 million. The transaction has been completed.
This time, Tencent's shareholding accounts for 1.9% of Futu's total share capital. After the transaction, Tencent will continue to hold 20.6% equity in Futu, remaining as Futu's largest external shareholder.
Image source: SEC announcement
What is Form 144?
Form 144: Notice of Proposed Sale of Securities is a document issued by the Securities and Exchange Commission (SEC). Individuals such as executive officers and affiliates of a US-listed company must submit this form to the SEC when they intend to sell more than 5,000 shares or units of that company's stock, or if the sale price adds up to more than $50,000 in any three-month period. This regulation is known as Rule 144, under the Securities Act of 1933.
ADR vs ADS?
ADR, or American Depository Receipts, are issued by US depository banks and sold to US investors and traded on US stock markets. Each ADR represents a certain number of shares of the corresponding listed company according to the corresponding exchange rate.
ADS, or American Depository Shares, are the actual underlying stocks represented by ADRs.
