Trip.com Shares Jump More Than 4% in Hong Kong Debut
What’s new: Shares of leading Chinese travel agent Trip.com rose 4.55% in their Hong Kong trading debut on Monday, complementing their existing New York listing on the Nasdaq.
The company priced its Hong Kong shares at HK$268 ($34.50). The stock opened up nearly 5% at HK$281, before settling down to its closing level.
The company raised a net HK$8.3 billion through the listing, with 7% of shares sold to retail investors and the rest going to international buyers.
Why it’s important: The IPO was just the latest in an increasingly busy pipeline of major U.S.-traded Chinese internet companies making concurrent listings in Hong Kong. Trip.com made its original Nasdaq listing back in 2003, at which time it was called Ctrip.com.
E-commerce giant Alibaba Group Holding Ltd. was the first internet major to make such a concurrent listing, and has since been joined by the likes of JD.com Inc., NetEase Inc. and most recently search giant Baidu Inc. and online video company Bilibili Inc.
Dual listings make a company’s shares easily accessible to both Western and Asian investors, including those in China. They also allow for near round-the-clock trading. Some also see the newer Hong Kong listings as a hedge against potential future tensions between China and the U.S., with Washington increasingly scrutinizing Chinese companies listed in New York.
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Contact reporter Yang Ge (firstname.lastname@example.org)
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