Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), a leading travel service provider of accommodation reservation, transportation ticketing, packaged tours and corporate travel management in China, announced the commencement of the offering of 22,500,000 American depositary shares (the “ADSs”), each representing 0.125 of an ordinary share of the Company (the “ADS Offering”). The Company intends to grant the underwriters in the ADS Offering a 30-day option to purchase up to an additional 3,375,000 ADSs to cover over-allotments, if any.
The Company also commenced a concurrent offering of up to US$750 million in aggregate principal aggregate principal amount of convertible senior notes due 2022 (the “Notes”) (the “Notes Offering”). The Company intends to grant the initial purchasers in the Notes Offering a 30-day option to purchase up to an additional US$112.5 million principal amount of the Notes solely to cover over-allotments, if any. The closing of the ADS Offering is not contingent upon the closing of the Notes Offering, and the closing of the Notes Offering is not contingent upon the closing of the ADS Offering. The offerings are subject to market conditions and other factors.
J.P. Morgan Securities LLC and Morgan Stanley & Co. International plc are acting as the joint book-running managers for the ADS Offering. (Original Source)
Shares of Ctrip closed last Friday at $47.90, down $1.06 or -2.17%. CTRP has a 1-year high of $57.36 and a 1-year low of $30.12. The stock’s 50-day moving average is $45.14 and its 200-day moving average is $43.49.
On the ratings front, CTRP has been the subject of a number of recent research reports. In a report issued on September 1, Stifel Nicolaus analyst George Askew maintained a Buy rating on CTRP, with a price target of $56, which represents a potential upside of 17% from where the stock is currently trading. Separately, on the same day, Brean Capital’s Fawne Jiang reiterated a Buy rating on the stock and has a price target of $52.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, George Askew and Fawne Jiang have a total average return of 20.1% and 10.4% respectively. Askew has a success rate of 55% and is ranked #241 out of 4147 analysts, while Jiang has a success rate of 65% and is ranked #91.
The street is mostly Bullish on CTRP stock. Out of 7 analysts who cover the stock, 7 suggest a Buy rating . The 12-month average price target assigned to the stock is $53.00, which implies an upside of 10.6% from current levels.
Ctrip.com International Ltd. engages in the provision of travel-related services. It provides hotel accommodations, airline tickets, packaged tours, corporate travel management services, property management systems, and advertising services.