China online travel service provider files for HK IPO

Financial details have not been disclosed. The South China Morning Post reported that the company is seeking to raise between $1 billion and $1.5 billion.

According to a draft prospectus, Tencent is currently the largest shareholder with a 24.9% stake, followed by Ctrip with 22.9%. Ocean Link, a Chinese private equity firm focused exclusively on the travel and tourism industry, holds 5.2%.

Tongcheng-eLong was formed late last year through the merger of online travel agency Tongcheng Network Technology and hotel booking site operator E-dragon Holdings, also known as eLong. Ctrip and Tencent were investors in both companies at the time of the transaction.

Tongcheng had previously received backing from a number of private equity players, including Suzhou Ventures, which invested as early as 2010, and CITIC Capital, which joined an approximately $967 million round in 2015 alongside Tencent and Wanda Group. Other Tongcheng investors included Boyu Capital and Oriza Holdings.

As of 2016, Tongcheng was said to have a market value of $3 billion following a merger between one of its ticketing subsidiaries and a Wanda-affiliated travel company. In the same year, eLong was privatized by Ctrip, Ocean Link, and Tencent in a deal worth $660 million.

ELong, one of China’s first e-travel players, listed on NASDAQ in 2004 and counted Expedia as a major shareholder until 2015 when the US travel giant sold its entire position to a group including Ctrip. Ocean Link acquired a 21.8% holding when the company delisted, with Ctrip and Tencent retaining 38.3% and 14.7% stakes, respectively.

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• Topics
• Greater China
• Consumer
• Hong Kong (China)
• IPO
• Ocean Link
• Tencent
• TMT