JPMorgan Chase – Trip.com Said to Guide Hong Kong Listing price at HK$268 Each
Online travel platform Trip.com Group Ltd. is telling prospective investors it plans to price its Hong Kong second listing at HK$268 per share, on track to raise about $1.09 billion, according to people familiar with the matter.
The price represents a discount of about 2% to Trip.com’s closing price of $35.20 on Monday on the Nasdaq, the people said, asking not to be identified as the information isn’t public. The company is offering 31.6 million shares in the Hong Kong share sale. It has set a maximum price of HK$333 for the portion of the deal reserved for retail investors.
One of Trip.com’s American depositary shares is equivalent to one ordinary share. The shares are due to start trading in Hong Kong on April 19. An external representative for the company didn’t immediately respond to a request for comment.
Trip.com’s U.S. shares have risen about 4% this year, giving the firm a market capitalization of $21 billion. It is part of a wave of U.S.-listed Chinese companies seeking a trading foothold in Hong Kong which has seen some of the country’s biggest tech giants such as Alibaba Group Holding Ltd. and JD.com Inc. raise over $36 billion since late 2019, data compiled by Bloomberg show.
The second listings act as a way to hedge against the risk of being kicked off U.S. exchanges as a result of rising Sino-U.S. tensions, as well as to bring in more Asia-based investors. The U.S. Securities and Exchange Commission has said it will start implementing a law passed last year requiring overseas companies to let American regulators inspect their audits or face delisting.
Recent second listings from the likes of Baidu Inc. and Bilibili Inc. fared less well than ones last year as they got caught up in a broader selloff of technology shares as investors rotated into sectors expected to benefit from a recovery of global growth. But tech names have since staged a comeback, with the Nasdaq Composite Index rising from lows hit at the beginning of March.