Across The Border | Private school operators head to Hong Kong for financing to expand
Total revenue of the mainland private education industry reached 287.9 billion yuan in 2015, a compound annual growth rate of 13.4pc from 2011
Four private mainland education companies are lining themselves up for initial public offerings in Hong Kong, as more firms tap into what has become a quickly growing market.
Bojun Education Company, the second largest private middle school operator in Chengdu, the capital city of China’s south-west province Sichuan, was the latest to file a prospectus with the Hong Kong Stock Exchange, in October, for a listing this year.
The fund-raising target is unknown yet, but the company plans to use the net proceeds to expand its network by developing with new schools in Sichuan and the United States, it said.
Bojun operates two middle schools, one middle and high school, and six kindergartens in Chengdu.
One month earlier before Bojun, China Yuhua Education Corporation applied for an initial share sale. It is China’s largest provider of private education, offering services from kindergarten through to university by student enrolments in the 2015-2016 school year, with 48,220 students, according to consulting firm Frost & Sullivan.
Minsheng Education Group Company, which operates four colleges in south-west city Chongqing, and China New University Group, running private universities in Yunnan and Guizhou provinces, also have IPOs in the pipeline.