New Oriental OnlineOn March 14, the latest plan for listing on the Hong Kong Stock Exchange was announced. The company said it will start public offering in Hong Kong at 9 am on March 15 and close at 12 noon on March 20, 2019.New OrientalOnline stocks are expected to begin trading on the main board of the Hong Kong Stock Exchange on March 28, 2019.Morgan Stanley, Citi andCICCAs a joint sponsor.
New Oriental Online will launch 164.5 million shares, of which 148 million shares will be offered for international offering, representing approximately 90% of the total number of initial offer shares; the remaining 0.165 billion shares will be available for sale in Hong Kong, representing approximately 10% of the total number of initial offer shares. The offer price per share is between HK$9.3 and HK$11.1. The shares will be traded in board lots of 500 shares. The fundraising amount is between HK$1.53 billion and HK$1.826 billion.
In the future, the funds will be invested in six areas, of which 30% will be invested in employee recruitment and training activities; about 30% will be used for selective acquisition, investment in complementary businesses and support group growth strategy; about 10% for Increase and improve its content supply and curriculum development capabilities; approximately 10% for improvement and implementation of sales and marketing activities; approximately 10% for investment improvement and upgrading of its technology infrastructure; and the remaining 10% for working capital.
New Oriental holds 66.72% shares
shareholderIn terms of public information, New Oriental is the largest shareholder, holding 66.72%.
By citing public information, New Oriental's total revenue increased from RMB 334.2 million in FY2016 to RMB 446.2 million in FY2017, and further increased to RMB 650.5 million in FY 2018, and as of November 2017. On the 30th, the three-month RMB 328.7 million was increased to RMB 478 million for the six months ended November 30, 2018, a year-on-year increase of 45.4%. Continue to maintain three years of profit. In the first half of FY2019, compared with the first half of FY18, the revenue of the three core businesses increased year-on-year. The growth rate of university business revenue was 41.7%, mainly due to the increase in the number of students paying for universities; the growth rate of K-12 business was 91.5%. Mainly due to the substantial increase in the number of paid students and the expansion of the Oriental Broadcasting Program; pre-school business revenue growth of 166% year-on-year, mainly due to the versatility of the application program and the variety of products in the school. The three core business revenues achieved overall growth, keeping pace with the increase in paying subscribers.
In addition, Tencent is the company's second largest shareholder, holding 12.06%; Auspicious is the third largest shareholder, holding 7.11%. In addition, Jinglin Assets founder Jiang Jinzhi's spouse Tang Hua's investment company is the fourth largest shareholder, holding 6.87%.
Previously won three rounds of financing
According to the prospectus, New Oriental Online has obtained three rounds of financing since its establishment, totaling US$164 million. In the first round, Tencent invested 50.786 million US dollars. In the second round, Dragon Cloud and ChinaCity Capital invested 73.453 million US dollars and 19.246 million US dollars respectively. The third round was invested by Yu Minhong.Company investment206.687 million US dollars.
Founded in 2005, New Oriental Online is a holding subsidiary of New Oriental Education Technology Group. It provides online education courses for students of different ages in three core segments, namely university education, K-12 education and pre-school education. According to the Frost & Sullivan Report, in 2017, New Oriental Online ranked China's number one comprehensive online tutoring and pro forma service provider in 2017, but only accounted for 0.63% of the market.
New Oriental Online's paid student arrivals increased from 653,000 in FY2016 to 1 million in FY2017, and further increased to 1.94 million in FY 2018, and 80.6 for the six months ended November 30, 2017. It has increased to 1.1 million for the six months ended November 30, 2018. In 2018, the number of paying users of New Oriental Online increased by 92% year-on-year, and the input and output were positively correlated, showing a relatively good development trend.
(Article source: Securities Daily)