GSX Techedu makes NYSE debut, raising USD 207.9 million at USD 10.5 per share, middle of the target range.
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EO Company released on June 6, 2019 that K12 online education platform GSX Techedu has been listed on NYSE under ‘GSX’. The company offered 19.8 million American Depositary Shares (ADSs), with 3 ADSs representing 2 Class A ordinary shares. The company raised USD 207.9 million in its IPO with the offering price USD 10.5, at the middle of the target range of USD 9.5 to USD 11.5.
GXS Techedu introduced that 30% of the funding will be allocated to the student experience and educational content development, 20% to high-quality teacher recruitment, 20% to fundamental technological infrastructure improvement, 20% to promotion and marketing, and the rest to maintain operations.
GSX Techedu has been making profits and maintaining a high growth rate since 2017. It goes to public right after the series A financing. According to the prospectus, GXS Techedu earned revenue of CNY 269 million (USD 40 million) in 2019Q1, with CNY 42.7 million (USD 6.36 million) operational income.
GSX Techedu has achieved remarkable user growth rate. The number of enrolled users in 2018 reached 767,102, increasing from 79,632 in 2017 by 863%. The number of paid users amounts to 412,871 in 2018.