Shares of TUHU-W (ASX: 09690) have surged more than 12% following announcements regarding a potential US listing and a substantial share repurchase program.
At the time of writing, the stock was up 9.7% to HK$12.55, with a trading volume of HK$13.64 million.
Key Developments
On June 29th, the company announced it has confidentially submitted a draft F-1 registration statement to the U.S. Securities and Exchange Commission for a proposed initial public offering of American Depositary Shares representing its Class A ordinary shares.
Concurrently, the company has submitted the requisite filings for this proposed overseas offering and listing to the relevant Chinese regulatory authorities in accordance with applicable laws and regulations.
The proposed offering and listing remain subject to regulatory reviews and approvals, market conditions, and other factors, and there is no certainty that it will proceed.
The number of ADSs to be offered and the price range for the offering have not yet been determined.
Share Repurchase Plan
In a separate announcement on the same day, the company's board resolved to repurchase its Class A ordinary shares in the open market.
The board also approved providing funds to the trustee under the company's existing post-IPO share scheme to purchase Class A shares.
The total amount for these repurchases will not exceed HK$1.5 billion.
The board believes that the share repurchase and subsequent cancellation of the repurchased shares is expected to benefit the company and create value for shareholders.
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