Trip.com set to raise US$1.1 billion in Hong Kong secondary listing at HK$268 per share
- The Shanghai-based travel booking site prices Hong Kong stock sale at 2 per cent discount to Nasdaq close on Monday
- Baidu-backed Trip.com bets on recovery of the global travel industry in 2022
Trip.com has priced its Hong Kong initial public offering at HK$268, a 2 per cent discount to its New York closing price overnight, which will see it raise about US$1.1 billion, below its initial target.
The decline in its American depositary receipts (ADRs) in New York, however, has made that top-end price target a tougher sale. Companies seeking a secondary listing in Hong Kong often take reference from their last US closing price when they set the offer price here. Trip.com’s Nasdaq-listed stock has been trending lower, closing at US$35.2 Monday in its four straight day of decline. But over the past 12 months it has risen 46 per cent. Each ADR is equivalent to one ordinary share
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There is an overallotment option to sell up to 4.7 million shares to meet strong investor demand. JPMorgan, CICC and Goldman Sachs are the joint sponsors, global coordinators and lead managers of the deal.
Baidu-backed Trip.com joins several other US-listed Chinese tech firms in pricing their deals at below their targets this year.
Other substantial investors with at least 5 per cent stakes include US asset manager T. Rowe Price and investment bank Morgan Stanley, according to the prospectus.
