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Singapore’s Big Winner for the Week: Asiatravel.com Holdings Ltd

Since last Friday, Asiatravel.com Holdings Ltd (SGX: 5AM) has gained around 11% to close at S$0.26 on Thursday. This makes the share one of Singapore’s big winners as the SPDR STI ETF (SGX:ES3), a proxy for the Straits Times Index (SGX: ^STI), has moved up by only 2.2% during the same timeframe.

Asiatravel.com, which was voted as the best online travel agent by TTG Travel Awards for the second consecutive year in 2014, is the first Asia-based online hotel reservation firm. It has operations and customer service offices in Singapore, Malaysia, Indonesia, Thailand, Philippines, Hong Kong, China and United Arab Emirates.

On 23 October, the company announced that it had entered into a share subscription agreement with ZhongHong Holding Co., Ltd. Asiatravel.com said it will issue 40 million new ordinary shares to ZhongHong at an issue price of S$0.25 per share.

ZhongHong is listed on the Shenzhen Stock Exchange in China and is mainly involved in marketing, sales & development of commercial properties, especially in tourism industry such as theme parks. It has developed more than a million-square-meter area of properties in the country to-date.

Asiatravel.com will receive net proceeds of around S$9.6 million from the share placement. The company intends to use the money for general working capital purposes.

Earlier this month, the company received the Best Online Travel Agency 2014 award at the 25th Annual TTG Travel Awards 2014. It won the award last year as well. The award is given based on the most number of votes for a given set of criteria.

Executive Vice President of Asiatravel, Magdalene Yeo, said the following upon receiving the award:

“We are indeed honoured to receive this award for the second consecutive year. There are many online travel agencies in Asia Pacific and to be voted as outstanding from the rest and especially by the travel industry is both a pride and humble call to continue working closely together with the industry to raise its standards and excellence. We sincerely thank all our partners in Asia Pacific for this trust and confidence.”

The firm was loss-making for the financial year that ended 30 September 2013.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.