Mainland travel portal Ctrip.com International raised the price for its American depositary receipts (ADRs) to US$18 each yesterday, as global investors flocked to the initial public offering amid resurgent enthusiasm for China internet plays.
The sale of 4.2 million ADRs raised US$75.6 million - about $27 million of which will go into the pockets of company executives and investors, with the remainder being used for working capital, capital expenditure and possible acquisitions. One ADR represents two of the company's ordinary shares.
The issue price was at the high end of an indicative pricing range of US$16 to $18, which was raised from $14 to $16 during the one day book-building process on Monday in the United States.
In early Nasdaq trade yesterday, the ADRs had surged 41.56 per cent to US$25.48.
'Because of strong demand from investors, we priced at US$18,' Neil Shen Nanpeng, Ctrip's co-founder, president and chief financial officer, said.
Lead underwriter Merrill Lynch has the option to buy 500,000 ADRs from company executives and investors to cover over-allotments. While not yet exercised, 'there was a good chance it will be', according to market sources.