China's GSX Techedu prices IPO in U.S.

Source: Xinhua| 2019-06-06 23:27:31|Editor: yan
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NEW YORK, June 6 (Xinhua) -- GSX Techedu, which provides K-12 online after-school tutoring in China, priced its initial public offering (IPO) in the U.S. stock market at 10.50 U.S. dollars per share, the company announced on early Thursday.

The size of the IPO involving 19,800,000 American Depositary Shares (ADSs) is valued at approximately 207.9 million dollars, assuming the underwriters do not exercise their option to purchase additional ADSs. Every 3 ADSs represent 2 Class A ordinary shares.

The ADSs have been approved for listing on the New York Stock Exchange and are expected to begin trading on Thursday under the ticker symbol "GSX."

The underwriters have been granted an option, exercisable within 30 days from the date of the final prospectus, to purchase up to an additional 2,970,000 ADSs from the company.

The company filed with the U.S. Securities and Exchange Commission for an IPO on May 8. Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Barclays Capital Inc. and CLSA Limited are acting as joint book runners for the offering.

Founded in 2014, the Beijing-based technology-driven education company is the third largest online K-12 large-class after-school tutoring service provider in China in terms of gross billings in 2018, according to its latest prospectus.

Its K-12 courses cover all primary and secondary grades, and contributed over 73 percent and 75 percent of the firm's total revenues in 2018 and for the three months ended March 31, respectively.