SHANGHAI - Atour Lifestyle Holdings Limited (NASDAQ:ATAT), a prominent hospitality and lifestyle company in China, has announced a secondary offering of American depositary shares (ADSs) by entities affiliated with Legend Capital. The offering consists of 10 million ADSs, with an additional option for underwriters to purchase up to 1.5 million more ADSs from Legend Capital within a 30-day period.
The company has clarified that it will not receive any proceeds from the sale of the ADSs by Legend Capital. Post the completion of this secondary offering, Legend Capital is expected to hold approximately 7.6% of Atour's issued and outstanding share capital, provided the underwriters do not exercise their additional purchase option.
Concurrent with the offering, Mr. Hongbin Zhou, a director at Atour appointed by Legend Capital, will resign from his position effective upon the completion of the secondary offering.
The offering is being managed by BofA Securities, Inc., CMB International Capital Limited, and Citigroup Global Markets Inc. as joint bookrunners. It will be conducted pursuant to an effective shelf registration statement on Form F-3 previously filed with the U.S. Securities and Exchange Commission (SEC). Interested parties can access the preliminary prospectus supplement and accompanying prospectus related to the offering on the SEC's website.
Atour Lifestyle Holdings Limited, listed on NASDAQ with the ticker ATAT, is recognized as a leading upper midscale hotel chain in China and is noted for being the first Chinese hotel chain to develop scenario-based retail business. The company aims to innovate within China's hospitality industry and establish new lifestyle brands centered around hotel offerings.
InvestingPro Insights
As Atour Lifestyle Holdings Limited (NASDAQ:ATAT) embarks on its secondary offering of ADSs, investors may be evaluating the financial strength and market performance of the company. According to recent data from InvestingPro, Atour boasts a strong balance sheet, with more cash than debt, which could be a reassuring sign for stakeholders considering the company's liquidity amidst the offering. Additionally, Atour's status as a prominent player in the Hotels, Restaurants & Leisure industry positions it well within a competitive market landscape.
InvestingPro Data highlights include a robust Revenue Growth of 107.38% over the last twelve months as of Q1 2024, indicating a significant expansion in Atour's operations. Furthermore, the company's Gross Profit Margin stands at an impressive 40.69%, showcasing its ability to maintain profitability in a challenging economic environment. With a Market Cap of 2450M USD, Atour is a notable entity within its sector, and its P/E Ratio, currently at 18.38, offers insights into its valuation relative to earnings.
For those interested in a deeper analysis, InvestingPro provides additional insights, including the fact that Atour's cash flows can sufficiently cover its interest payments, suggesting financial stability. Moreover, the company's liquid assets exceed its short-term obligations, further underscoring its solid financial positioning. While Atour does not pay a dividend, which may influence certain investment strategies, analysts predict that the company will be profitable this year. Investors may find the full suite of InvestingPro Tips at https://www.investing.com/pro/ATAT, where there are 7 additional tips available. To access these tips and more detailed analytics, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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