NEW YORK (TheStreet) -- Shares of Qunar Cayman Islands (QUNR) were gaining 5.4% to $50.31 Friday morning after the travel company priced and downsized its public offering of American Depositary Shares.
Qunar priced the 6,526,316 ADSs in its public offering at $47.50 an ADS. The company previously announced it would offer 8 million ADSs in the public offering. The underwriters of the offering have a 30-day option to buy up to an additional 315,790 ADSs.
Each ADS in the offering represents three Class B ordinary shares of Qunar.
The company said it plans to use the proceeds from the offering for general corporate purposes which include the acquisition of new users. Qunar may also use part of the proceeds to acquire "complementary businesses, products, services, or technologies," though it noted it hasn't yet entered into any agreements of commitments for specific acquisitions.
TheStreet Ratings team rates QUNAR CAYMAN ISLANDS -ADR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate QUNAR CAYMAN ISLANDS -ADR (QUNR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: