Zhihu Inc., the Chinese online knowledge-sharing platform, saw its stock surge 5.68% in pre-market trading on Monday. This rally came after the company announced a significant reduction in its issued share count.
According to the update, Zhihu has reported a decrease of over 31 million Class A ordinary shares outstanding, representing a strategic move by the company. Details on the specific reason behind this share count reduction were not provided.
Investors seem to have reacted positively to this development, potentially viewing it as a measure to increase the scarcity of Zhihu's shares and boost the stock's value. However, more information from the company would be needed to fully assess the implications of this share count reduction.
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