New Oriental Sets Record-High Offer Price for Secondary Listing in Hong Kong
Xu Wei
DATE:  Nov 04 2020
/ SOURCE:  Yicai
New Oriental Sets Record-High Offer Price for Secondary Listing in Hong Kong New Oriental Sets Record-High Offer Price for Secondary Listing in Hong Kong

(Yicai Global) Nov. 4 -- New Oriental Education and Technology Group, a leading provider of education services in China, has fixed the share price of its upcoming secondary listing on the Hong Kong stock exchange at HKD1,190 (USD153), making it the most expensive stock on the bourse and the first to go past HKD1,000.

Both the international offering and Hong Kong public offering prices have been set at HKD1,190, around 5 percent less than the firm’s closing price of USD160.79 on the New York stock exchange [NYSE:EDU] yesterday, the Beijing-based company said. It is expected to list on Nov. 9.

This comes in at almost double the current highest priced stock on the Hong Kong bourse, biopharmaceutical company Zai Lab [HKG:9688], which closed at HKD663.50 (USD85) today. E-commerce giant Tencent Holdings [HKG:0700] and fast-food restaurant firm Yum China [HKG:9987] followed at HKD588.50 and HKD409.20 respectively.

The record high offer price is despite a 16.4 percent year on year plunge in net profit for the first quarter of its fiscal year 2020-21 to USD174.7 million and an 8 percent slide in revenue to USD986 million. The earnings per share were USD1.09 compared to USD1.31 in the same period last year.

New Oriental is planning to rake in around HKD10.13 billion (USD1.3 billion) through the sale of 8.5 million shares. Most of the proceeds will be used to invest in innovation and technologies to improve its Open Market Operations system and enhance students’ learning experience. The rest will be used for business growth and geographic expansion, strategic investments and acquisitions as well as to supplement working capital.

The firm offers K-12 after-school tutoring, overseas and domestic exam preparation, language training for adults, pre-school education, primary and secondary school education, education materials and distribution as well as online education, according to its website.

Editor: Kim Taylor

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Keywords:   New Oriental Education,Hong Kong,stock exchange