New Oriental is an old private education group. Founded in 1993, new Oriental started its business with overseas study and English training. Since then, it has expanded its business fields such as K-12 after-school tutoring and online education.In September 2006, New Oriental joined the New York Stock Exchange, EDU and became the first education company in China to go public in the United States.
The return of Hong Kong stock secondary listing, new Oriental and New Oriental online master Hong Kong stock market, again became the first to return to the Hong Kong stock of education enterprises.In March 2019, New Oriental Online was spun off and listed in Hong Kong.
According to the announcement, New Oriental plans to issue 8.51 million H shares, of which the Hong Kong public offering accounted for 6% and the international allotment accounted for 94%. The overallotment shares were not exercised.The emphasis is on OMO (online and offline integration) systems.
After opening up about 16 per cent in early trading today, the shares fell as they stood firm at more than $1,000, giving the market value of Hong Kong shares more than HK $220 billion.
Meanwhile, New Oriental online fell slightly in early trading, with its latest market value at about HK $25bn.
By the close of trading on Nov. 6, the three most expensive stocks in Hong Kong were Zaiding Pharmaceuticals, Tencent Holdings and Applied Materials, which traded at HK $671.5, HK $614.5 and HK $454, respectively.
In addition, New Oriental’s American depositary shares (each American depositary share is a common share) will continue to trade on the New York Stock Exchange, and upon completion of the secondary listing in Hong Kong, new Oriental’s Hong Kong-listed shares will be fully convertible with new York-listed American depositary shares.
Coming back is not a surprise
In the past year, Chinese concept stocks have returned to the tide, and the market is not surprised to new Oriental’s return.Earlier in the middle of this year, New Oriental and Its future two home share education leaders have been rumored to return to Hong Kong for a secondary listing, but subsequently denied by the company.
Although new Oriental keeps leading in the capital market, in recent years, from its “big brother” status at the time of listing, new Oriental constantly encounters the challenge of having a good future and who to learn from.
In 2017, the future of New Oriental, founded 10 years later than New Oriental, surpassed new Oriental in American stock market value, and the education giant exchanged seats with one or two.Good Future was last valued at more than $42bn.In addition, less than two years after GSX went public, its total market value surpassed New Oriental at one point, approaching $34 billion.However, the market value has fallen to around $17 billion due to a series of short selling by various institutions.
Overall, however, shares in New Oriental, which had been shorted by Muddy Waters, have held up well, trading at more than $28 billion and closing at $178.99 on Nov. 6.
In terms of performance in recent years, the financial data of the nearly three fiscal years from 2018 to 2020 show that New Oriental achieves revenue of $2.447 billion, $3.096 billion and $3.579 billion respectively.In terms of net income, it was $297 million, $228 million and $355 million in the last three fiscal years.For the first quarter of fiscal 2021 ended August 31, 2020, New Oriental had a net profit of $151 million.
Affected by the COVID-19 epidemic, New Oriental’s revenue in the fourth quarter of fiscal year 2020 (From March to May 2020) fell by 5% and net profit by nearly 70% year-on-year, among which the overseas exam preparation revenue fell by 52% year-on-year.The company still faces a downturn in performance in the first quarter of fiscal 2021 (June-August 2020), which has also prompted the company to accelerate its OMO strategy.
According to the prospectus, as of May 31, 2020, New Oriental had established 104 schools, 1,361 learning centers and 12 bookstores in 91 cities across the country, serving more than 55.4 million students since its inception.New Oriental plans to use the net proceeds from the global offering to invest in technology to enhance the student learning experience, improve the function and efficiency of the OMO system, business growth and regional expansion, strategic investments and acquisitions, and general corporate purposes and working capital needs.
Reprint indicated source：Shine Trader Limited Live information