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China’s Yuhua Education files for IPO
Posted on Friday, 17 February 2017 08:02
As part of expansion plans, China Yuhua Education (Yuhua) is listing its equity on the Hong Kong Stock Exchange (HKEX) via an initial public offering (IPO) worth up to HKD 1.91 billion (USD 245.47 million).
The private education provider is issuing 675.00 million new shares to international investors, while a further 75.00 million will be sold locally.
Yuhua’s stock to be listed, which represents a 25.0 per cent stake in its enlarged capital, is being offered at up to HKD 2.54.
BOCOM International Prosperity Investment, an affiliate of China’s Bank of Communications, has agreed in advance to subscribe for USD 50.00 million worth of shares in the transaction.
Co-managed by companies including Merrill Lynch and CCN International, the deal is subject to approvals from the HKEX and the Securities and Futures Commission.
Based in Zhengzhou and incorporated in the Cayman Islands, Yuhua provides private education ranging from elementary, to high school, to tertiary levels.
It is planning to build and acquire new K-12 institutions and universities in the Henan province, while using the remaining proceeds from the IPO to upgrade existing facilities, supplement working capital, and repay bank loans.
In terms of student enrolment, Yuhua was, as of last year, the largest organisation among Chinese private school operators that offer a similar range of educational options, according to a report by industry consultant Frost & Sullivan.
It posted revenue of CNY 781.33 million in the 12 months ended 31st August 2016, up 12.0 per cent on the CNY 697.71 million recorded during the same timeframe in the previous year.
Net profit for the period totalled CNY 311.68 million, compared to CNY 91.20 million in 2015.
Dadi Education Holdings became the latest firm to have successfully listed on the HKEX yesterday, raising HKD 148.78 million in the process.
Its shares opened at HKD 0.34 on the first trading day, unchanged from its IPO price.
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