Tarena International sets IPO price range at $8-$10 per ADS
(Reuters) - Tarena International Inc, a provider of IT education in China, said it expects to price its initial public offering of 15.3 million class A American Depositary Shares (ADS) at $8-$10 per share.
The Beijing-based company said it expects to raise $153 million from the IPO, based on the top end of the price range. (r.reuters.com/pah77v)
Tarena International is selling 11.5 million shares in the offering, while the rest is offered by stockholders.
The company, which has trained more than 130,000 students, offers a platform for distance education, classroom-based tutoring and online learning modules, mainly in IT subjects.
Tarena International, which counts Goldman Sachs as one of its stockholders, posted a 63 percent jump in revenue to $92.8 million for the year ended December 31.
The market for professional education services in China is projected to grow at about 7 percent to $14.7 billion between 2013 and 2017, the company said, citing data from market research firm IDC.
Tarena International intends to list its ADSs on the Nasdaq under the symbol "TEDU" and listed Goldman Sachs (Asia) LLC and Credit Suisse Securities as lead underwriters to its offering.
For Chinese companies, the U.S. market affords them options not available in Hong Kong, such as dual-class structures and the ability to list without having turned a profit. It also offers far more liquidity than the newly reopened mainland China IPO market.
Chinese e-commerce giant Alibaba Group Holding Ltd is inching closer to a listing in the United States. It will hold the kickoff meeting for the planned IPO next week, Reuters reported earlier in the week, citing sources.
E-commerce company JD.com Inc and Twitter-like messaging service Weibo Corp have also filed for a U.S. initial public offering.
(Reporting By Neha Dimri in Bangalore; Editing by Saumyadeb Chakrabarty)