Tencent-backed online travel agent jumps on Hong Kong debut

[HONG KONG] Shares of Tongcheng-Elong Holdings Ltd, a Chinese online travel agent backed by tech giant Tencent Holdings, jump as much as 10 per cent above IPO (initial public offering) price on their trading debut, riding the broader market's rebound.

The stock rises to as high as HK$10.78 apiece, and is the fourth-most actively traded stock in Hong Kong.

Tongcheng-Elong offered 143.84 million shares at HK$9.80 apiece, raising net proceeds of HK$1.25 billion (S$219.6 million) to enhance product and service offerings, expand user base, fund acquisitions and to build bigger data and AI (artificial intelligence) capabilities

Tencent is the largest shareholder holding 23.18 per cent of Tongcheng-Elong, and travel services provider Ctrip is the second-largest shareholder owning 22.61 per cent of the company

Shares of Tencent rise 1.6 per cent. The Hong Kong Hang Seng sub-index tracking information technology firms gains 0.7 per cent. The Hong Kong benchmark index climbs 1.3 per cent.

REUTERS