Chinese economy and mid-scale hotel franchisor GreenTree Hospitality Group raised $143 million in its initial public offering (IPO) of 10.2 million American depository shares, according to a Xinhua report.
The Shanghai-based company, which franchises over 2,200 hotels in China, priced its ADS at $14 apiece, which was below GreenTree’s initial target range of $16 to $18. It made its debut on the New York Stock Exchange (NYSE) on Tuesday under the ticker symbol GHG.
In its prospectus, the Shanghai-based company said it will use approximately 60 per cent of the net proceeds of its offering for potential acquisitions of domestic and overseas companies.
Another 25 per cent will be used for organic expansion of the hotel chain, which was the fourth largest economy to mid-scale hotel group in China in terms of number of hotel rooms as of 2016, and the improvement of existing hotel properties.
In 2004, the first GreenTree Inn hotel opened its doors in Shanghai, China and today through acquisition and development, the company operates over 2,600 hotels throughout Asia.
In China, GreenTree’s hotel network comprised 2,289 hotels with 190,807 rooms as of December 31, 2017, according to the filing.
The company claims to have covered all four centrally-administered municipalities and 263 cities throughout 27 provinces and autonomous regions in China.
“The brand now has extensive plans for expansion into the US hotel market and is growing strategically through acquisition, franchisee development, and brand loyalty,” the company said on its social media page.
GreenTree Inns Hotel Management Group, Inc. (GTI), a company incorporated in Samoa, or GreenTree Samoa, is the holding company of the GreenTree Hospitality Group, which conduct operations in China through PRC subsidiaries.
For this year, many Chinese companies are expected to go public in the US, including two Chinese tech unicorns, or start-ups valued above $1 billion, ride-sharing service provider Didi Chuxing and e-commerce website Meituan-Dianping.
Chinese electric vehicle startup Nio is also eyeing a $2-billion IPO, while IQiyi Inc, the Chinese entertainment company backed by Baidu Inc, has also filed for a US IPO.
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