China-based edtech Youdao(NYSE: DAO) today announces the pricing of a public offering of 7,000,000 American Depositary Shares (“ADSs”), each representing one ordinary share of the company, at a public offering price of US$34.00 per ADS.
The underwriters will have an 11-day option to purchase up to an aggregate of 1,050,000 additional ADSs from the company.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, and China International Capital Corporation Hong Kong Securities Limited, are acting as the joint bookrunners for the ADS offering.
According to the prospectus, the net proceeds from the ADS offering will be further invested in technology and product development, expand branding, marketing efforts, and satisfying other general corporate purposes.
As Youdao was an online education subsidiary of China’s internet giant NetEase, it is worth noting that besides the follow-on public offering, NetEase group will also provide Youdao with a US $300 million credit to support its long-term growth.
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