By Martin Mou
Online travel platform Trip.com Group Ltd. shares rose in their Monday debut in Hong Kong, as China gears up for a busy travel season during the upcoming Labor Day holiday.
Trip.com shares opened 4.85% higher and were last up 3.4% at 277.00 Hong Kong dollars, compared with their IPO price of HK$268.00 a share.
The company raised around HK$8.33 billion (US$1.07 billion) in net proceeds from its offering in Hong Kong. Trip.com is the latest among U.S.-listed Chinese companies to tap the active fundraising market in the Asian financial center.
The listing also comes as domestic travel in China is poised for further recovery, as more Chinese residents are vaccinated against the coronavirus under an accelerated government rollout.
Chinese airlines broadly recorded a sharp jump in air-travel demand last month. China Southern Airlines said its passenger traffic by revenue passenger kilometers more than doubled from a year earlier.
The airlines are also confident in a domestic market recovery despite continued uncertainty over international travel due to border closures amid the pandemic.
Chinese tourists are expected to make nearly 200 million trips over the upcoming five-day holiday starting May 1, which would make it the busiest Labor Day holiday ever in the country, Chasing Securities says.
Trip.com said it plans to use proceeds from the offering to fund its expansion and invest in technology, as well as general corporate purposes and working capital needs.
Write to Martin Mou at firstname.lastname@example.org
(END) Dow Jones Newswires
April 18, 2021 22:36 ET (02:36 GMT)
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