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Summary
- Trip.com shares traded 4% higher from their issue price on the first day of trading in Hong Kong.
- Proceeds are planned to be used for the expansion of offerings and improving user experience and operating efficiency.
- The company is already listed in the United States.
China-based online travel agency Trip.com has went public on the Hong Kong Stock Exchange (HKSE). The stock experienced an increase of more than 4 per cent from its issue price on its debut on 19 April 2021.
Image source: © Vladimirovnairina | Megapixl.com
The global travel services provider is now dual listed on the HKSE and the NASDAQ. It has joined the likes of JD.com, Baidu and Alibaba, which are US-listed Chinese tech heavyweights with secondary offerings in Hong Kong.
Many of the Chinese tech companies are dual listing themselves as they continue to face the threat of being delisted in the US amid the souring US-China relationship in the post pandemic era.
Do check: What is Initial Public Offering? | IPO Explained
The Offering Details
Image source: © Kendrysdale | Megapixl.com
As part of the global offering, the company offered 31,635,600 ordinary shares, at USD 0.00125 per share, comprising an international offering of 28,155,650 ordinary shares and a Hong Kong public offering of 3,479,950 ordinary shares, as per the prospectus. The offering price for both Hong Kong and international offering was HKD 268.00 or USd34.5 per ordinary share.
The company plans to use the net proceeds from the global offering for technology investment to improve operating efficiency and to bolster its leading market position in services and products.
Furthermore, the proceeds would be directed towards improving the user experience by expanding travel offerings. The funds are also planned to be used for general corporate purposes and working capital to support growth.
Similar to other companies from the travel space, Trip.com results were also adversely affected by the COVID-19 pandemic induced challenges. Many factors like domestic and international travel restrictions, decline in travel demand, reduced new orders, and reservation cancellations added to the sector's woes.
Also read: AIA, AIR Shares Move up As Quarantine-Free Trans-Tasman Travel Begins
Other Recent Hong Kong IPO that took the market by storm
Video-sharing app company Kuaishou Technology debuted on the Hong Kong stock exchange on 5 February 2021. It was founded by two former Google employees Cheng Yixiao and Su Hua, in 2011.
The IPO raised USD 5.32 billion, and the shares did exceptionally well during the first day of trading, rocketing 200%, thus marking the company's smashing entry to the exchange.
Must read: All You Need To Know About Kuaishou That Made a Splash with $5bn IPO
The company owns a mobile app named GIF Kuaishou, which allows users to create exciting graphics interchange format or GIFs.
