GreenTree Hospitality Group, which franchises over 2,000 economy and mid-scale hotels in China, raised USD 143 million by offering 10.2 million ADSs at USD 14, below the range of USD 16-18. GreenTree Hospitality Group plans to list on the NYSE under the symbol GHG.
Xinhua news agency reported that approximately 60% of the net proceeds of this offering will be used for potential acquisitions of domestic and overseas operators, while 25% of the net proceeds of this offering will be used for the organic expansion of the hotel chain and the improvement of existing hotel properties.
The Shanghai-based company was the fourth largest economy to mid-scale hotel group in China in terms of number of hotel rooms as of 2016, according to China Hospitality Association.
As of December 31, 2017, GreenTree's hotel network comprised 2,289 hotels with 190,807 rooms in China, covering all four centrally-administrated municipalities and 263 cities throughout 27 provinces and autonomous regions in China, according to the filing.
GreenTree's revenue was 119.6 million dollars in 2017, an increase of 20.3 percent compared with the year before, while its net income was 43.8 million dollars in 2017, up 7.2 percent from a year ago, the company said in its prospectus.
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