Atour Lifestyle Reports Commencement Of Proposed Offering Of Aggregate 8M ADSs By Entities Affiliated With Legend Capital
Portfolio Pulse from Benzinga Newsdesk
Atour Lifestyle Holdings Limited (ATAT) has announced the commencement of a proposed secondary offering of 8 million American Depositary Shares (ADSs) by entities affiliated with Legend Capital. The underwriters have an option to purchase up to an additional 1.2 million ADSs within 30 days. Each ADS represents three Class A ordinary shares.
December 04, 2023 | 10:38 pm
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Atour Lifestyle's secondary offering could lead to dilution of existing shares, potentially causing a short-term decrease in stock price.
Secondary offerings often result in dilution of existing shares, which can lead to a decrease in stock price as the market absorbs the additional supply. The impact is likely to be more pronounced in the short term as investors and traders react to the news.
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