New Oriental surges on Hong Kong market debut
New Oriental Education & Technology Group, a Chinese tutoring, test preparation and private school operator, surged on its Hong Kong market debut on Monday, and became the first stock of over 1,000 Hong Kong dollars on the market.
Shares of New Oriental opened at 1,381 Hong Kong dollars (about 178 U.S. dollars) Monday morning, up significantly from its offer price of 1,190 Hong Kong dollars.
Its public offering was oversubscribed 1.55 times by local investors and about 6.4 times by international buyers. The net proceeds from the global offering are estimated at 9.97 billion Hong Kong dollars (assuming that the over-allotment is not exercised); If the over-allotment is fully exercised, the company will receive additional net proceeds of about 1.51 billion Hong Kong dollars.
Since New Oriental's listing on the New York Stock Exchange on Sept. 7, 2006, its American depositary shares (one ADS represents one ordinary share) have been traded on the New York Stock Exchange. Upon completion of its second listing in Hong Kong, New Oriental's shares in Hong Kong and its ADS will be fully convertible.
Looking ahead, New Oriental will continue to develop online and offline integration systems to provide students with high-quality teaching systems and more perfect classrooms, said Yu Minhong, New Oriental's executive chairman.
According to its prospectus, New Oriental was established in 1993 and listed on the New York Stock Exchange in 2006. It is the largest private education service provider in China. As of May 31, 2020, New Oriental has set up 104 schools, 1,361 learning centers and 12 bookstores in 91 cities across the country.