New Oriental Online Technology Holdings Limited, a Chinese online Extracurricular Education Service Provider supported by Tencent (0700.HK), began its roadshow on Thursday and plans to list on the Hong Kong Stock Exchange at the end of this month, according to sales documents seen by Reuters on Thursday.
New Oriental Online Technology is controlled by New Oriental Educational Technology Group (EDU.N) listed in the United States, and Tencent is the second largest shareholder.
New Oriental Online Technologies plans to raise HK$1.53-1.826 billion for its initial public offering (IPO) in Hong Kong, with a share price range of HK$93-11.1 per share and a market value of HK$8.5-101 billion (US$11-13 billion) excluding excess equity, according to the documents.
The company started its roadshow today. It is expected to be priced on March 20 and listed on the Stock Exchange on March 28. Its new share number is 1797. Its co-sponsors are Citigroup, Morgan Stanley and China National Capital.
Originally a simple online overseas examination preparation service provider, New Oriental Online Technology has expanded to provide a comprehensive online education platform for University education, K-12 education, pre-school education and institutional customers (universities, public libraries, telecommunications operators and online video streaming providers).
According to the preliminary listing documents, the company recorded a total revenue of 650 million yuan and operating profit of 33.09 million yuan in the fiscal year ended May 31, 2018, and a total revenue of 480 million yuan and operating loss of 41.44 million yuan in the six months ended November 30, 2018.
In FY2018, the company's total number of paid students was about 1.9 million, with 59.7%, 9.5% and 30.8% of the total number of University education, K-12 education and pre-school education, respectively.
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