GreenTree Hospitality Group, which franchises over 2,000 economy and mid-scale hotels in China, slashed the number of shares it plans to offer in its upcoming IPO on Monday.
The Shanghai, China-based company now plans to raise $173 million by offering 10.2 million ADSs at a price range of $16 to $18. The company had previously filed to offer 19.4 million ADSs at the same range. At the midpoint of the range, GreenTree Hospitality Group will raise -47% less in proceeds than previously anticipated.
Broader equity markets, and Chinese stocks in particular, have been pressured over the past week.
GreenTree Hospitality Group was founded in 2004 and booked $123 million in sales for the 12 months ended December 31, 2017. It plans to list on the NYSE under the symbol GHG. Morgan Stanley, BofA Merrill Lynch and UBS Investment Bank are the joint bookrunners on the deal. It is expected to price during the week of March 26, 2018.
