Trip.com has filed for a secondary listing in Hong Kong. The Chinese travel booking site is already listed on the Nasdaq in the U.S.Rafael Henrique
Trip.com has filed for a secondary listing in Hong Kong. The Chinese travel booking site is already listed on the Nasdaq in the U.S.
Rafael Henrique | SOPA Images | LightRocket | Getty Images
GUANGZHOU, China — Chinese travel booking site Trip.com has filed for a secondary listing in Hong Kong, following other high profile names like Alibaba and Baidu, to raise money in the financial hub.
Trip.com, which is currently listed on the Nasdaq in the U.S., did not disclose the number of shares it will issue nor the price they will list for. That is usually determined some time after the initial filing in Hong Kong.
JPMorgan, CICC and Goldman Sachs will be the joint sponsors of the secondary listing.
A number of U.S.-listed Chinese technology companies have done secondary listings in Hong Kong including Alibaba, JD.com, Baidu and Bilibili. Continuing tensions between the U.S. and China have threatened to hit foreign firms listed on U.S. exchanges.
Last month, the U.S. Securities and Exchange Commission adopted a law which increases the auditing requirements for Chinese firms and carries the threat of delisting for those that fall foul of the rules.
A secondary listing in Hong Kong could be a way to hedge against this threat.
Trip.com has felt the impact of the coronavirus pandemic which has put the brakes on global travel as authorities levied restrictions in an attempt to contain the spread of the virus.
The company’s net revenue for 2020 was 18.3 billion yuan ($2.8 billion), a 49% year-on-year fall.
Still, U.S.-listed shares of Trip.com have surged more than 60% over the last 12 months as domestic travel continues to bounce back in China and anticipation builds for an opening up of international flights.