Ctrip goes for a secondary listing in Hong Kong.
On Monday, shares of Chinese online travel service platform Ctrip Group made a secondary listing on the Hong Kong Stock Exchange, pricing at HK$268 per share and opening at HK$281. In its previous offering proposal, Ctrip capped its offering range at HK$333 per share to raise up to HK$10.5 billion.
On April 19, Ctrip’s share price opened up 4.85%, latest up 3.4% at HK$277.00, with its IPO offering price of HK$268.00 per share.
In the end, Ctrip issued a total of 31,635,600 new shares, with the proportion of retail public offerings accounting for 7% and international placements accounting for 93%, raising net proceeds of HK$8.33 billion. If the underwriters had exercised their over-allotment option, the amount of proceeds raised would have been HK$9.59 billion.
Ctrip has already listed on the NASDAQ in the US.
Despite the increasing number of Chinese companies going public in the U.S., the Chinese Ministry of Finance and the Securities and Exchange Commission have violated U.S. law by not allowing Chinese companies listed in the U.S. to provide accounting filings to the U.S. Public Company Accounting Oversight Board (PCAOB) under the guise of “state secrets” in order to circumvent U.S. accounting regulations.
In December 2020, the 45th President of the United States, Donald Trump, officially signed the Foreign Company Accountability Act (HFCA Act). Under the act, foreign companies will be banned from listing on any U.S. exchange if they fail to pass an audit by the U.S. Public Company Accounting Oversight Board (PCAOB) for three consecutive years; the act also requires listed companies to disclose their ties to the country’s government.
On March 24 of this year, the U.S. Securities and Exchange Commission (SEC) issued an updated notice announcing that it had adopted interim amendments to implement the disclosure requirements for listed companies under the Foreign Company Responsibility Act.
Analysts believe that the SEC’s formal notice means that Chinese stocks listed in the U.S. will face greater pressure to delist.
In June 2020, two Internet giants, Jingdong and NetEase, have returned to Hong Kong for secondary listing; at the end of October 2020, New Oriental also landed on the Hong Kong stock market.
In 2021, Motor Home and Baidu completed their secondary listings back in Hong Kong; Beili Beili (B Station) subsequently made its secondary listing in Hong Kong.
According to statistics, so far in November 2019, more than 13 Chinese stocks have returned to secondary listing, including Ali, Jingdong, Netease, Yum China, China Express, Huazhu Group, Redding Medicine, Baozun E-commerce, and B Station. Among them, Alibaba, Jingdong, Baozun e-commerce, China Express, China National Data, Baidu Group, B station seven with the same share different rights structure in the Hong Kong Stock Exchange secondary listing.
The official media “Securities Times” reported on April 19, citing the analysis of CICC, that external pressure coupled with the system of the Hong Kong Stock Exchange, Chinese stocks will also accelerate the process of listing back in Hong Kong in 2021.
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