Atour Lifestyle Holdings Ltd Adr (ATAT)

Shares of Atour Lifestyle Holdings Ltd ADR (ATAT) dropped by 6.28% from $18.01 to $16.87 in the trading on Monday, December 04, 2023. The reason why ATAT is down today is due to announcement of a proposed registered underwritten offering by entities affiliated with Legend Capital.

• Details of the Offering: Legend Capital, an entity affiliated with ATAT, disclosed its intention to initiate a registered underwritten offering involving American depositary shares (ADSs). Each ADS represents three Class A ordinary shares of par value $0.0001 each of the Company. The proposed offering, known as the "Secondary Offering," aims to involve an aggregate of 8,000,000 ADSs.
• Underwriters' Option: In addition to the initial offering, the underwriters in the proposed Secondary Offering will have a 30-day option to purchase up to 1,200,000 additional ADSs from Legend Capital. The announcement raised concerns among investors, as they are cautious that this offering might dilute the shares' earnings.