H World Group Limited Announces Pricing of Public Offering of American Depositary Shares

Rhea-AI Summary

H World Group Limited (NASDAQ: HTHT) has priced an underwritten public offering of 6,190,000 American depositary shares (ADSs) at US$42.00 each, with an option for underwriters to buy an additional 928,500 ADSs within 30 days. Proceeds will fund growth strategies amid post-COVID recovery, enhance competitiveness, and support technology and ESG initiatives. Goldman Sachs and UBS are underwriting the offering, which is registered with the SEC and effective as of January 10, 2023. The press release advises that it is not an offer to sell securities in jurisdictions where it would be unlawful.

Positive

• The offering aims to fund growth strategies, enhancing competitiveness and technological infrastructure.
• The net proceeds will support long-term success, including ESG initiatives and distribution systems.

Negative

• The public offering may lead to dilution of existing shareholders' equity.
• Total offering size may impact share prices depending on market reception.

SHANGHAI, China, Jan. 10, 2023 (GLOBE NEWSWIRE) -- H World Group Limited (NASDAQ: HTHT and HKEX: 1179) (“H World” or the “Company”), a key player in the global hotel industry, today announced that the pricing of its underwritten public offering (the “Offering”) of 6,190,000 American depositary shares (“ADSs”), each representing ten ordinary shares of the Company, at a price of US$42.0 per ADS. In addition, the underwriters for this Offering have a 30-day option to purchase up to an aggregate of 928,500 additional ADSs from the Company.

The Company plans to use the net proceeds from the Offering (i) to fund its growth strategies amid post-COVID reopening, including enhancing the competitiveness of its hotel portfolio and developing its regional-based operating paradigm; (ii) to invest in initiatives that support its long term success, including its technology infrastructure, supply chain ecosystem, distribution system that connects both individual guests and corporate clients, and environment, social and governance (ESG) efforts; and (iii) for working capital and general corporate purposes.

Goldman Sachs (Asia) L.L.C. and UBS Securities LLC are acting as joint underwriters for the Offering.

The Offering is being made only by means of a prospectus supplement and an accompanying prospectus included in the Company’s Form F-3ASR filed with the U.S. Securities and Exchange Commission (the “SEC”) and became automatically effective on January 10, 2023. The registration statement on Form F-3ASR and the prospectus supplement are available at the SEC’s website at: http://www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus may be obtained from: (i) Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1-866-471-2526, facsimile: 212-902-9316 or by emailing Prospectus-ny@ny.email.gs.com; and (ii) UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, U.S.A., by calling 1-888-827-7275 or by email at ol-prospectus-request@ubs.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy ADSs or any other securities, nor shall there be any sale of ADSs or any other securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Safe Harbor Statement Under the U.S. Private Securities Litigation Reform Act of 1995: The information in this release contains forward-looking statements which involve risks and uncertainties. Such factors and risks include our anticipated growth strategies; our future results of operations and financial condition; economic conditions; the regulatory environment; our ability to attract and retain customers and leverage our brands; trends and competition in the lodging industry; the expected growth of demand for lodging; and other factors and risks detailed in our filings with the U.S. Securities and Exchange Commission. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements, which may be identified by terminology such as “may,” “should,” “will,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “forecast,” “project” or “continue,” the negative of such terms or other comparable terminology. Readers should not rely on forward-looking statements as predictions of future events or results.

H World undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contact Information
Investor Relations
Tel: 86 (21) 6195 9561
Email: ir@hworld.com
http://ir.hworld.com

FAQ

What is the pricing of H World Group's public offering on January 10, 2023?

The offering is priced at US$42.00 per American depositary share.

How many ADSs is H World Group offering?

H World Group is offering 6,190,000 ADSs, with an option for underwriters to purchase an additional 928,500 ADSs.

What will H World Group do with the proceeds from the offering?

Proceeds will fund growth strategies, enhance competitiveness, and support technology and ESG initiatives.

Who are the underwriters for H World Group's offering?

Goldman Sachs and UBS are acting as joint underwriters for the offering.

What are the risks associated with H World Group's public offering?

Risks include potential dilution of existing shares and market reactions affecting share prices.