China International Travel Service to list in Shanghai on Thu

Oct. 14, 2009 (China Knowledge) - China International Travel Service Co Ltd<601888>, the top travel agency in the country, will list in the Shanghai Stock Exchange on Thursday.

CITS said in a statement filed with the Shanghai Stock Exchange yesterday that 176 million shares of the company will become tradable on the SSE from tomorrow.

Last month, CITS raised RMB 2.6 billion by issuing 220 million shares, equivalent to 25% of its enlarged capital. The IPO price was set at RMB 11.78 apiece, the top end of its indicated price range. It also represents 49 times its 2008 earnings on a fully diluted base after the IPO.

The proceeds from the IPO will be used for expansion of its core businesses, including establishing new tourist agencies and duty-free shops, according to its IPO prospectus.

China Securities Co Ltd was the major underwriter for the offering.

Net profit of CITS amounted to RMB 221.23 million in 2008, up 1.9% from a year ago.