Chinese private school operator New Oriental seeks to raise up to US$1.54 billion in secondary Hong Kong listing
- New Oriental is selling 8.51 million shares in its offering, and has set a maximum price of HK$1,399 for the retail tranche of the deal
- The company plans to use the proceeds to investing in technologies to enhance students’ learning experience and for expansion and acquisitions
New Oriental Education & Technology Group, a Chinese tutoring, test preparation and private school operator, is looking to raise as much as HK$11.9 billion (US$1.54 billion) in its second listing in Hong Kong.
New Oriental is selling 8.51 million shares in its offering, according to a company statement on Wednesday. It has set a maximum price of HK$1,399 for the portion of the deal being marketed to Hong Kong’s retail investors, which represents a premium of almost 7 per cent over Tuesday’s closing price of US$168.81 for its American depositary shares. One ADS represents one ordinary share.
New Oriental plans to price the Hong Kong shares on November 3, according to the statement. It intends to use the proceeds for purposes including investing in technologies to enhance students’ learning experience and for business expansion and acquisitions.
Trading is slated to start on November 9.
Credit Suisse Group, Bank of America and UBS Group are joint sponsors for the offering, according to a preliminary prospectus.