China Lodging Announces Stock Split
Each ADS would represent one ordinary share starting May 25 for China Lodging shareholders.
China Lodging Group Ltd. (Nasdaq: HTHT) announced today that its shareholders would soon see their shares at the company quadruple.
The company, China's second-largest hotel operator by number of units, said each American depositary share will represent one ordinary share, a change from the current ratio of one ADS representing four ordinary shares. Shareholders of China Lodging as of May 21 will receive three additional ADSs for each owned ADS, effective May 25. The company's ordinary shares will not change.
In its annual filing for 2017, China Lodging disclosed a revenue of $1.3 billion, a 25 percent increase from 2016. Its reported net income for 2017 was up 54 percent to $190 million.
The brands China Lodging operates include Hi Inn, HanTing Hotel, Elan Hotel, HanTing Premium Hotel, JI Hotel, and Starway Hotel.
Among the company's largest shareholders is Ctrip.com International Ltd. (Nasdaq: CTRP), one of China's top online travel services, which owned nearly 8 percent of China Lodging as of its most recent regulatory filing.
The Shanghai-based company listed its ADSs on the Nasdaq Global Select Market in 2010 at $12.25 per ADS. Since its introduction, the stock has steadily risen, to $30 per share in 2015, more than $50 by the end of 2016, and over $100 in 2017. Its high this year was $166.19 per ADS in January, before sliding since then. China lodging was trading at $125.85 per share mid-afternoon today in New York.
China Lodging's intraday stock is $125.85 per share, 2 percent down on Friday.