Ctrip announced the official launch of its IPO. Why is the price cap set at HK$333 per share?

Ctrip is an online ticketing service company founded in 1999 and headquartered in Shanghai, China. Ctrip.com has more than 600,000 member hotels at home and abroad for booking, and is China's leading hotel reservation service center.

Ctrip has established branches in 17 cities including Beijing, Tianjin, Guangzhou, Shenzhen, Chengdu, Hangzhou, Xiamen, Qingdao, Shenyang, Nanjing, Wuhan, Nantong and Sanya, with more than 25,000 employees. . In December 2003, Ctrip was successfully listed on NASDAQ in the United States.

On April 7, 2021, Ctrip announced that it had officially launched its Hong Kong listing and planned to sell 31.6356 million shares globally, with a price ceiling of HK$333 per share. Its shares will be listed on the Hong Kong Stock Exchange with the stock code ?9961?

According to the prospectus, Ctrip’s revenue has grown steadily in the four years from 2016 to 2019. However, in 2020, due to the impact of the new crown epidemic, Ctrip’s revenue for the year was only 18.327 billion yuan, a year-on-year decrease of 49%, and a decrease of 41% compared with 2018. In addition, Ctrip's net loss in 2020 was 3.247 billion yuan, while its net profit in the same period in 2019 reached 7.011 billion yuan.

In fact, as early as the end of 2019, Ctrip executives, including Ctrip CEO Sun Jie, met with many Hong Kong investment banks in batches and launched plans to return to Hong Kong for a secondary listing. But then the epidemic broke out. As a platform that mainly relies on tourism to generate revenue, all businesses of Ctrip were hit hard. The stock price once fell from US$35 per share in December 2019 before the epidemic to US$20 per share. ?

Ctrip announced that it has officially started offering shares, and Ctrip plans to sell 31.6356 million shares globally, and 333 Hong Kong dollars = 268.7976 yuan. At a lower price per share, it will sell a large number of shares quickly and obtain a large amount of shares. income.