If QuantaSing Group's IPO on Nasdaq goes well, it will send positive signals to other Chinese concept stocks looking to list on overseas markets.
Chinese online learning service provider QuantaSing Group (Chinese: 量子之歌) filed for an IPO on Nasdaq recently, with Citigroup, CICC, and Tiger Brokers listed as the offering's underwriters.
The company plans to raise CNY 418.58 million (USD 60 million). The funding will be used to improve the user learning experience and content development capabilities, expand services and overseas business, improve technology infrastructure, and marketing and branding.
QuantaSing Group offers easy-to-understand, affordable, and accessible online courses to adult learners under various brands, including QiNiu (Chinese: 启牛学堂), a financial education platform, JiangZhen (Chinese: 讲真), an adult learning platform and QianChi (Chinese: 千尺学堂), a platform targeting middle-aged and elderly learners.
According to the prospectus, QuantaSing's revenue in the fiscal year of 2021 ending June 30, 2021, was CNY 1.76 billion, and it reached CNY 2.868 billion in the fiscal year of 2022 ending June 30, 2022, an increase of 63% year over year. The company's adjusted net loss in fiscal 2021 was CNY 214 million, followed by a net income of CNY 58 million by June 30, 2022. Revenue from corporate business grew from CNY 144 million in fiscal 2021 to CNY 186 million in 2022. For the three months ending September 30, 2022, revenue from corporate services reached CNY 73.6 million, a 72.9% increase from CNY 42.6 million in the same period of the previous year.
QuantaSing had around 75.1 million registered users as of November 30, 2022, a fourfold increase from 17 million in fiscal 2021. As of June 30, 2022, there were 1.1 million premium subscribers, an increase of 37.5% from 800,000 in fiscal 2021.
According to a report from Frost & Sullivan, China's adult learning market size is expected to increase from CNY 566.4 billion in 2021 to CNY 994.7 billion in 2026 at a compound annual growth rate of 11.9%. The demand for financial literacy courses is among the largest.