China Int'l Travel Service wins CSRC approval for Shanghai IPO

Jul. 22, 2009 (China Knowledge) - The China Securities Regulatory Commission, the nation's top securities regulator, on Monday announced that it has given the nod to China International Travel Service Corp, the largest comprehensive travel agency in China, to launch an initial public offering on the Shanghai bourse.

China International Travel, which is 84.62% held by its parent, China International Travel Service Group, and 15.38% held by Shenzhen Overseas Chinese Town Holding Co<000069>, plans to issue up to 220 million shares to raise about RMB 1.7 billion, according to its prospectus.

After the new share offering, the company will have 880 million outstanding shares, and the parent group will hold a 61.35% stake in the listed firm.

The proceeds will be used to expand the company's travel network and to support its subsidiary, China Duty Free Group, which operates 170 duty-free shops in locations that include airports, ferry terminals and road and railway borders.

China Securities Co Ltd has been hired as the underwriter of the new share offering.

In 2008, China International Travel reported net profit of RMB 221.23 million, compared with RMB 217 million in the previous year.