Chinese “crammer” school operators are cashing in on investors’ enthusiasm for the country’s $85bn-plus private education market with a series of public offerings in the US.
Xueda Education Group, which runs a nationwide network of coaching centres for students facing entrance exams, this week filed for a $124m listing on the New York Stock Exchange.
This came as shares of rival TAL Education jumped 50 per cent in their trading debut on Wednesday after raising $120m in New York. Two others, Global Education & Technology Group and Ambow Education, listed on Nasdaq recently.
Many of these companies are backed by private equity and venture capital – both from China and abroad. They have generally found the US markets receptive, ever since veteran outfit New Oriental listed there as early as 2006.
But the latest rush is driven by ever-higher expectations of the amounts of money Chinese parents will pay to educate their children.