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China Education Group to list in Hong Kong
Posted on Wednesday, 06 December 2017 08:33
China Education Group Holdings is raising HKD 2.32 billion (USD 297.23 million) via an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX).

Under the terms, the construction firm is issuing 433.33 million new shares, which account for 25.0 per cent of its enlarged capital.

While the offer price has not yet been determined, the IPO prospectus indicated that it will range between HKD 4.46 and HKD 5.36 per share.

The listing, which is expected to complete on 15th December 2017, is being facilitated by China International Capital, CMB International, Zhongtai International Securities and ABCI Securities, among other advisors.

China Education mainly operates as a general contractor for building and infrastructure construction projects.

According to industry consultant Frost & Sullivan, it was the second largest non-state owned construction firm in China in terms of revenue as of last year.

Apart from that, the group is also engaged in other related businesses including property development and management.

The company posted revenue of CNY 20.03 billion in the six months ended 30th June 2017, up 7.7 per cent on the CNY 18.59 billion recorded during the same timeframe in the previous year.

Net profit for the period totalled CNY 499.60 million, compared to CNY 299.90 million in H1 2016.

China Education will use the proceeds mainly to fund its new and existing construction and public-private partnership projects, while the remaining amount has been earmarked for debt repayment and general corporate expenses.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 44 IPOs completed on the HKEX since the beginning of this year.

The largest of these was the HKD 11.90 billion listing of travel and casualty insurance provider Zhongan Online P&C Insurance.

© Zephus Ltd