On October 28th, New Oriental Education & Technology Group Inc.(NYSE: EDU) announced its launch of Hong Kong Public Offering under the stock code “9901”.
As one of China’s leading after-school tutoring and test preparation service providers, New Oriental is looking to raise as much as HK$11.9 billion ($1.54 billion) in its second listing in Hong Kong.
The company is selling 8.51 million shares in its offering and setting a maximum price of HK$1,399 per share, according to its statement. Moreover, New Oriental plans to price the Hong Kong shares on November 3rd and trading is slated to start on November 9th.
New Oriental plans to use 40% of the net proceeds for investments in technologies to enhance students’ learning experience, 30% for its business growth and geographic expansion, 20% for strategic investments and acquisitions, and 10% for general corporate purposes and working capital.
There is a trend that the U.S. listed Chinese companies like JD.com and NetEase conduct share sales in Hong Kong as a way to broaden their investor, further, a hedge against the tense international situation.
This June, Thomson Reuters' International Financial Review reported that TAL and New Oriental were considering a secondary listing in Hong Kong, the two education giants responded that they had no such plan at that time.
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