Trip.com shares surge in Hong Kong debut as travel rebounds in China
By Martin Mou
The actions of the online travel platform Trip.com Group Ltd. rose in their Hong Kong debut on Monday, as China gears up for a busy travel season during the upcoming Labor Day holiday.
Trip.com shares opened up 4.85% and were up 3.4% to HK $ 277.00, from their IPO price of HK $ 268.00 per share.
The company has raised approximately HK $ 8.33 billion ($ 1.07 billion) in net proceeds from its Hong Kong offering. Trip.com is the latest Chinese company listed in the United States to tap the active fundraising market in the Asian financial center.
The list also comes as domestic travel in China is set to rebound as more Chinese residents are vaccinated against the coronavirus as part of an accelerated government rollout.
Chinese airlines globally saw a surge in demand for air travel last month. China Southern Airlines said its passenger traffic in revenue passenger-kilometers more than doubled from the previous year.
Airlines are also confident in a domestic market recovery despite lingering uncertainty over international travel due to border closures amid the pandemic.
Chinese tourists are expected to make nearly 200 million trips over the next five-day vacation starting May 1, making it the country’s busiest Labor Day, according to Chasing Securities.
Trip.com said it plans to use the proceeds of the offering to fund its expansion and invest in technology, as well as general business goals and working capital requirements.
Write to Martin Mou at [email protected]
(END) Dow Jones News Wire
April 18, 2021 at 10:36 p.m. ET (2:36 a.m. GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.