Tencent- and Ctrip-invested online travel firm to raise $1 billion in HK IPO
In 2017, Tongcheng-eLong recorded a net profit of 194 million yuan.
Chinese mainland online travel agent Tongcheng-eLong is expected to list on Hong Kong stock market in December to raise USD 1 billion (RMB 694 million) via its initial public offerings after a hearing at Hong Kong Exchanges and Clearing on October 25, news portal Sina said on Tuesday.
CMB International Capital Corporation, JPMorgan and Morgan Stanley will act as the IPO's lead underwriters.
The company was formed by travel service companies Tong Cheng Network and E-dragon Holdings, or eLong, in December, and its major shareholders include Tencent with 24.92% and Ctrip with 22.88% of the company's shares.
In 2017, the merged entity recorded a net profit of 194 million yuan.
Tong Cheng Network and eLong have differentiated advantages on transport tickets predetermining and hotel booking, respectively, before the two merge.
The two businesses accounted for 91.2% and 93.8% of the two companies' total revenues, said Sina, citing China Securities.
Sina citing China Securities said the company's revenue growth will be 51.65%, 40.85% and 29.5% during 2018-2020, and the revenue and profit will achieve 14.45 billion yuan and 3.18 billion yuan, respectively.
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