CTrip.com Posts Successful IPO

Internet travel company CTrip.com(CTRP Quote) became the first IPO Tuesday to nearly double its share price on its first day in more than three years.

The Chinese hotel and booking company closed up $15.94, or 89%, at $33.94. The Shanghai-based firm sold 4.2 million American Depositary Shares at $18 a share to raise $76 million. Range talk was initially between $14 and $16 a share.

Not since chipmaker Transmeta(TMTA Quote) hit the market in November 2000 has a new offering done so well on its debut.

CTrip's gain could bode well for Orbitz -- which is scheduled to debut next week -- as well as for a slew of other China-related companies that plan to sell shares in America over the next few months. The market is gearing up for a $3 billion IPO from insurer China Life later in the week.

Analysts said CTrip has benefited from a growing Chinese economy and a low exchange rate.

"The [IPO] is a way for investors to get in on a booming travel market in China, where CTrip does not have a lot of competition," said Francis Gaskins, editor of IPODesktop.com.

According to Securities and Exchange Commission filings, CTrip.com is profitable. In its most recent reporting period, the company got 86% of its revenue from its hotel reservation business.