Atour Lifestyle Holdings, an upper midscale hotel chain in China, announced terms for its IPO on Thursday.
The Shanghai, China-based company plans to raise $286 million by offering 19.7 million ADSs at a price range of $13.50 to $15.50. New investor Hillhouse Capital Management intends to purchase up to $120 million worth of ADSs in the offering (42% of the deal). At the midpoint of the proposed range, Atour Lifestyle Holdings would command a fully diluted market value of $2.2 billion.
Atour Lifestyle Holdings claims it was the largest upper-midscale hotel chain in China by number of rooms in 2020. The company offers guests a range of products and services through offline and online channels, including its mobile app and WeChat mini program. Atour Lifestyle Holdings has developed a scenario-based retail business within its hotels, incorporating a fully immersive shopping experience in guests' rooms with a range of products representing more than 1,100 SKUs. As of March 31, 2021, the company had 608 hotels in 131 cities in China.
Atour Lifestyle Holdings was founded in 2013 and booked $272 million in revenue for the 12 months ended March 31, 2021. It plans to list on the Nasdaq under the symbol ATAT. BofA Securities, Citi, CICC, and CMB International Capital are the joint bookrunners on the deal.
