Trip.com has requested a secondary listing in Hong Kong. The Chinese travel booking site is already listed on the US Nasdaq
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GUANGZHOU, China – Chinese travel booking site Trip.com has filed a secondary list in Hong Kong, following other well-known names such as Alibaba and Baidu, to raise money in the financial center.
Trip.com, which is currently listed on Nasdaq in the US, did not disclose the number of shares it will issue or the price they will list. This is usually determined some time after the initial filing in Hong Kong.
JPMorgan, CICC and Goldman Sachs will be joint sponsors of the secondary listing.
A number of Chinese technology companies listed in the US have made secondary listings in Hong Kong, including Alibaba, JD.com, Baidu and Bilibili. Continuing tensions between the US and China have threatened to hit foreign companies listed on US stock exchanges.
Last month, the US Securities and Exchange Commission passed a law that increases audit requirements for Chinese companies and poses a threat of deregistration to those who do not comply.
A secondary list in Hong Kong could be a way to protect yourself from this threat.
Trip.com felt the impact of the coronavirus pandemic, which put a brake on global travel as authorities imposed restrictions on trying to control the spread of the virus.
The company’s net revenue for 2020 was 18.3 billion yuan ($ 2.8 billion), down 49% year-on-year.
However, Trip.com’s US-listed shares have risen by more than 60% in the past 12 months as domestic travel continues to return to China and international flights are expected to open.