China International Travel Service Corp is seeking to raise as much as 2.6 billion yuan (US$380.7 million) in a Shanghai initial share sale after setting a price range for the offer that most analysts said was in line with expectations.
The company priced the 220 million A shares, or 25 percent of its enlarged capital after the issuance, at between 10.80 yuan and 11.78 yuan, according to a filing with the Shanghai Stock Exchange yesterday.
The range would allow the Beijing-based company, China's biggest tourist agency, to raise 2.4 billion yuan to 2.6 billion yuan. The company earlier said it aimed to raise 1.7 billion yuan to fund a travel network, duty-free shops and other projects.
"China International's IPO comes at the right time because tourism-related stocks are in favor in the run-up to the National Day holiday," said Guolian Securities analyst Wei Chanjuan.
"Still," she added, "other recent new listings have not been very strong."
Although some analysts said the price range was a bit on the high side and might damp demand for the shares, others said it appropriately reflects the company's value given its leading position in the domestic market.