Tuniu Corp’s IPO on Nasdaq Scores $72 Million.
A popular Chinese online leisure-travel company, Tuniu Corp, has managed to raise more than $1 in its first day of trading on the Nasdaq Stock Exchange, and secured over $72 million during its initial public offering on Friday.
Tuniu’s CFO, Conor Yang, stated that its has been an extremely busy week for the Nanjing, Jiangsu province-based company, but that he and his colleages are not completely focused on gaining attention from the right invest to grow their business.
“In this online space, leisure travel is basically Tuniu and CTrip as the two major players,” Yang said Friday in an interview with China Daily. “We ranked No 1 in the online organized tour market in China, and CTrip was No 1 for self-guided tours. It’s a very fragmented market and we do see the opportunity for a leader like us to continue to contend and increase our market share.”
“I think that people see so many deals coming out now, even from China, so for investors you need to have a very simple story and proposition to attract interest,” he said.
Founded during 2006, Tuniu offers a wide array of travel-related services and packaged tours through its online and mobile platforms. Th company’s product covers over more than 70 countries worldwide, including many popular tourist destinations in China.
Tunio had priced their IPO up to 8 million shares at $9 per share, the bottom end of its $9 to $11 range. The stock, which trader under the ticker symbol TOUR, was opened at $9 and hit a high of $10.64 during the early afternoon before closing at $10.07, and increase of up to nearly 12 percent.
The IPO came out during a much busy week for Chinese companies trying to go public within the US.
During Thursday, a Beijing-based Internet and mobile phone security application developer, Cheetah Mobile, managed to raise a total of $168 million in listing on the New York Stock Exchange. During Tuesday, Chinese e-commerce conglomerate Alibaba Group Holding filed to go public in an IPO that could become the biggest ever, possible surpassing over $20 billion.