Jiuhua Tourism issued 27.68 million shares at RMB12.08 per share at a price-earnings ratio of 20.47 in an offering on March 26. The new issue will bring its total issued shares to 110.68 million.
Jiuhua Tourism is a well-known Chinese tourism conglomerate involved in hotels, cable cars, passenger transportation and tour agencies. Its Jiuhuashan Scenic Areas developments include designated national natural and cultural heritage sites, national 5A rated scenic areas and one of China’s four sacred Buddhist mountains.
Funds raised in this offering will be used for the renovation of Tiantai cableway and Dongya Hotel and the expansion of the Xifeng Hotel, as well as repaying bank loans.
Jiuhua Tourism leverages Jiuhuashan’s excellent geographic location and unique Buddhist cultural resources to make itself a high quality comprehensive scenic tourism operation and develop its business advantage. At the same time it benefits from continued improvement in transportation infrastructure surrounding its developments and state support for the tourism industry.
Jiuhua Tourism has huge potential in its mid- to long-term growth. Its revenue is estimated to increase by 4% to reach RMB428 million in 2015, and a further 10% and 12% for 2016 and 2017 respectively to reach RMB471 million and RMB529 million.(Translation by David)
