Atour Lifestyle Reveals Proposed Offering Of 10M ADSs By Entities Affiliated With Legend Capital
Portfolio Pulse from Benzinga Newsdesk
Atour Lifestyle has announced a proposed secondary offering of 10 million ADSs by entities affiliated with Legend Capital. Each ADS represents three Class A ordinary shares. The underwriters have a 30-day option to purchase an additional 1.5 million ADSs. Post-offering, Legend Capital will own approximately 7.6% of the share capital if the option is not exercised. Director Hongbin Zhou, appointed by Legend Capital, will resign upon completion of the offering.
June 10, 2024 | 9:18 pm
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Atour Lifestyle's secondary offering of 10 million ADSs by Legend Capital could lead to short-term stock price volatility. The underwriters' option to purchase an additional 1.5 million ADSs and the resignation of director Hongbin Zhou add to the uncertainty.
The secondary offering increases the supply of shares, which could put downward pressure on the stock price. The resignation of a director adds to the uncertainty, potentially affecting investor sentiment negatively.
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