NEW YORK (TheStreet) -- Shares of Ctrip.com (CTRP) - Get Ctrip.com International Ltd Sponsored ADR Report were falling on heavy trading volume mid-Tuesday afternoon after the China-based travel service company announced it would be offering 22.5 million new American depositary shares.
One ADS share will be worth 0.125 of an ordinary share, according to a company statement.
Ctrip.com is allowing underwriters JPMorgan and Morgan Stanley to purchase up to 3.375 million ADS shares to cover any over allotments.
Additionally, Ctrip.com is commencing an offer of up to $750 million in convertible senior notes due 2022. Initial purchasers will have a 30-day option to buy up to $112.5 million in additional notes.
The company plans to use the proceeds from the two offers to grow its business, acquire or invest in other companies and assets, and to fund other general corporate purposes.
More than 8.06 million of Ctrip.com's shares have traded so far on Tuesday vs. the 30-day average volume of 3.88 million shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B-.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CTRP