China Distance Education, a provider of online education and test preparation courses for professionals on the mainland, plans to raise US$96.8 million by listing on the New York Stock Exchange this month.
The company would offer 8.8 million American depositary receipts at between US$9 and US$11 each, sources said. Each ADR represents four ordinary shares.
A formal management roadshow will run from today until July 29, when pricing will be set, according to a sale document sent to fund managers.
Citigroup and Merrill Lynch are advising on the deal.
Three mainland education institutions have sought to list in the United States over the past two years. None has chosen to list in Hong Kong.
'US investors are well aware of their business model but I doubt Asian investors know them well,' said a source. 'They could grab a relatively fair valuation by selling shares in the US market, where investors are keen on them because of their huge business potential.'