Hujiang Education & Technology (Shanghai) Corp. Ltd. has filed to make an initial public offering (IPO) in Hong Kong, becoming the latest in a growing string of recent listings by firms that are using the internet to offer a wide range of flexible education products and services.
Like many of its peers, Hujiang has experienced strong growth by taking advantage of the internet’s capabilities to offer products like distance learning, online courses and customized instruction with a high degree of convenience. Such companies have done especially well due to the strong emphasis on education in China, where many are willing to pay for extra instruction to advance both themselves and their children.
Hujiang’s revenue grew 63% to 555 million yuan ($83.3 million) last year, it said in its prospectus filed with the Hong Kong Stock Exchange on Tuesday. Its loss widened over that same period to 537 million yuan from 422 million yuan in 2016, the prospectus said.
The company did not give a fundraising target or timetable for the offering. But the South China Morning Post said Hujiang is aiming to raise between $250 million and $300 million.
“We consider our (education technology) capacity the key to ensure our success and have been focused on developing technological tools, media, processes and data resources that are crucial for facilitating learning and improving study performance,” the company said. “We paid particular attention to the development of big data analytical capacity and appropriate AI algorithm to derive useful information from study behavior of users, based on which, we further combine our practical insight into study-related psychology, cognitive and other disciplines to upgrade or innovate our internet education products and services.”
The company would become one of the latest in a recent wave of high-tech education firms to list in Hong Kong and New York, taking advantage of their respective rapid growth stories to raise new money. One of the most recent in that wave was Puxin Ltd., which raised more than $120 million through a New York listing last month. Since then, the company’s shares have risen about 18% from their IPO price.