Trip.com has applied for a secondary listing in Hong Kong. The Chinese travel booking site is already listed on the Nasdaq in the USA
Rafael Henrique | SOPA pictures | LightRocket | Getty Images
GUANGZHOU, China – Chinese travel booking site Trip.com has applied for a secondary listing in Hong Kong after other well-known names like Alibaba and Baidu to raise funds in the financial center.
Trip.com, currently listed on the Nasdaq in the United States, has not disclosed the number of shares in issue or the price at which they will be listed. This is usually noticed 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 US-listed Chinese tech companies have secondary listings in Hong Kong, including Alibaba, JD.com, Baidu, and Bilibili. Persistent tensions between the US and China threaten to affect foreign companies listed on US stock exchanges.
Last month, the US Securities and Exchange Commission passed law that increases auditing requirements for Chinese companies and creates the risk of delisting for those who violate the rules.
A secondary listing in Hong Kong could be a way to hedge against this threat.
Trip.com has felt the effects of the coronavirus pandemic, which has slowed global travel, as authorities placed restrictions to contain the spread of the virus.
The company’s net sales for 2020 were 18.3 billion yuan ($ 2.8 billion), down 49% from the previous year.
Still, Trip.com’s US-listed shares are up more than 60% in the past 12 months as domestic travel in China continues to surge and the anticipation of international flights increasing.