By Mike Rosenberg
(GlobalNewswire)Qunar Cayman Islands Ltd (NASDAQ:QUNR) China’s leading mobile and online travel platform, announced the commencement of a registered public offering of its American Depositary Shares (the “ADSs”), each representing three Class B ordinary shares, par value US$0.001 per share (the “Ordinary Shares”), by the Company.

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The Company is offering an aggregate of 8,000,000 ADSs, representing 24,000,000 Ordinary Shares, subject to market conditions. The Company intends to grant to the underwriters a 30-day option to purchase up to an aggregate of 1,200,000 additional ADSs. The Company intends to use a majority of the net proceeds for general corporate purposes, including the acquisition of new users. The Company also may use a portion of the net proceeds to acquire complementary businesses, products, services or technologies. However, the Company has not yet entered into any agreements or commitments for any specific acquisitions at this time.

Goldman Sachs (Asia) L.L.C. is acting as book-running manager for the offering and BofA Merrill Lynch is acting as co-manager.

Qunar Cayman Equity Analysis

Qunar Cayman Islands Ltd (NASDAQ:QUNR) opened trading today as $45.75 and is trading in the range of 42.62-47.80 today. Qunar Cayman’s current market cap stands at $5.49 billion.

Compared to other peers in the General Entertainment sector, Qunar Cayman has outperformed in terms of quarterly revenue growth year over year at 1.07 vs. the industry average of 0.10. Qunar Cayman’s earnings per share is currently at -2.54, which Is below then the sector average of 0.67.

Qunar Cayman is currently covered by 15 Wall Street analysts. The mean target price is $46.39 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.5 which is based on 1 Strong Buy, 7 Buy and 6 Hold ratings.

The most recent analyst actions consisted of Deutsche Bank upgrading the stock on June 30th and Aegis Capital initiating coverage with an initiation rating back in March.

The current quarter EPS consensus estimate is -0.38 with revenue estimates of 113.38M. Sales are expected to grow at a 75.70% rate. Qunar Cayman reported actual earnings last quarter of -0.40 which beats the -0.41 consensus estimate, a 2.40% surprise.

Corporate Profile

Qunar Cayman Islands Limited operates an online travel commerce platform in the People’s Republic of China. The company through its platform provides a range of travel products comprising flight tickets, hotels, vacation packages, and attraction tickets, as well as display advertising, train tickets, car services, smart lodging, and other services. Its customers include flight travel service providers, airlines, independent hotels, online travel agencies, insurance service providers, and others. The company was founded in 2005 and is headquartered in Beijing, the People’s Republic of China. Qunar Cayman Islands Limited is a subsidiary of Baidu Holdings Limited.

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