GreenTree Hospitality Group Ltd. increased the size of its proposed IPO to as much as US$401.6 million in gross proceeds from a previously contemplated size of up to US$200.0 million.
The amended offering calls for the registration of 22,310,000 class A ordinary shares, expected to be priced between US$16.00 and US$18.00 per share, estimated for the purpose of calculating the registration fee.
The company expects net proceeds from the primary offering of 19.4 million shares of US$301.1 million, based on the midpoint of its projected price range. The company is also offering 2,910,000 additional shares to cover overallotments.
GreenTree is based in Shanghai and operates more than 2,000 economy to midscale hotels in China under its GreenTree Inns brand.
The class A shares will be composed of shares represented by American depositary shares, or ADS, that may be purchased by the underwriters under their option to purchase additional ADS, as well as all class A shares represented by ADS offered and sold outside the U.S. that may be resold in the U.S. The company has filed to list its ADS on the NYSE under the ticker symbol GHG.
In connection with its proposed IPO, GreenTree filed an F-6 registration statement for 100.0 million ADS carrying a proposed maximum price per unit of 5 U.S. cents for a maximum aggregate offering price of US$5.0 million, estimated solely for the calculation of the registration fee. Deutsche Bank Trust Co. Americas is serving as the depository for the ADS.
Morgan Stanley & Co. International PLC, Merrill Lynch Pierce Fenner & Smith Inc., UBS Securities LLC and ICBC International Securities Ltd. are serving as the underwriters.
