China IPO Digest: Youdao, Aesthetic Medical International Set Listing Terms

Youdao, an e-learning unit of Chinese internet technology company NetEase Inc., and Aesthetic Medical International, a Chinese provider of aesthetic medical treatments, have set the terms of their initial public offerings (IPOs).

Edtech platform Youdao eyes raising $116m in US IPO

Youdao, the Chinese online education platform of internet technology company NetEase Inc, hopes to raise up to $116 million in its IPO in the US by offering 5.6 million shares at $15 to $18 apiece, according to its latest SEC filing.

Founded in 2006, Youdao provides online dictionaries, online classrooms and language courses, with 100 million monthly average users in China in the first half of 2019. It intends to list under the symbol “DAO” on the New York Stock Exchange.

Youdao’s net revenue rose 67.7 per cent to 548.5 million yuan ($79.9 million) for the six months ended June 30, but its losses doubled to 167.9 million yuan during the same period. It would have a fully-diluted market value of $2 billion, were it to price in the middle of its offering.

The company said it will use the net proceeds from the offering further invest in technology and product development, expand its branding and marketing efforts, further grow its user base and satisfy other general corporate purposes.

Aesthetic Medical International to offer 2.5m ADSs on Nasdaq

Chinese aesthetic medical services provider Aesthetic Medical International Holdings is looking at raising around $29.2 million by offering 2.5 million ADSs on the Nasdaq Global Market.

The Shenzhen-based company plans to offer 2.5 million American Depositary Shares (ADSs), each representing three of the company’s ordinary shares, at a price range of $11-13, according to its latest prospectus.

The company is the third-largest private aesthetic medical services provider in China in terms of revenue in 2018, which registered $110.9 million, according to U.S. consultancy Frost & Sullivan.

Aesthetic Medical International Holdings will trade on the Nasdaq under the symbol “AIH”.

According to data from Refinitiv, Chinese companies have raised over $70 billion in the US stock market since 2000.