New Oriental’s shares officially began trading on the Main Board of the SEHK this morning under the stock code “9901”, which means that New Oriental has become the first Chinese education company to launch Hong Kong secondary listing.
The shares opened at 1,381 Hong Kong dollars, surging significantly on its Hong Kong market debut from its offer price of 1,190 Hong Kong dollars. And the shares closed at 1,365 Hong Kong dollars today, with a total market cap of 230.5 billion Hong Kong dollars. New Oriental has become the first stock of over 1,000 Hong Kong dollars on the market.
According to the company, its public offering was oversubscribed 1.55 times by local investors and about 6.4 times by international buyers. The net proceeds from the global offering are estimated at 9.97 billion Hong Kong dollars (assuming that the over-allotment is not exercised); If the over-allotment is fully exercised, the company will receive additional net proceeds of about 1.51 billion Hong Kong dollars.
Since New Oriental's listing on the New York Stock Exchange in 2006, its American depositary shares (one ADS represents one ordinary share) have been traded on the New York Stock Exchange. Upon completion of its second listing in Hong Kong, New Oriental's shares in Hong Kong and its ADS will be fully convertible.