Skillful Craftsman Education Technology Ltd. has set the terms for its expected initial public offering in New York, seeking to raise up to $16.8 million.
The Chinese vocational training provider hopes to sell 2.4 million ordinary shares at between $5.50 and $7 per share, according to its updated prospectus filed Monday with the U.S. SEC. That was an increase from the previous expected price range of $4.50 to $5.50.
Underwriters on the deal, The Benchmark Company LLC and Axiom Capital Management Inc., may acquire an additional 360,000 shares upon IPO.
In its latest filing, Skillful Craftsman has also updated its financials, previously shown as unaudited estimates. For the year ended March 31, the company reported $24.7 million in revenues, up 66% year-over-year. Net profit was $8.7 million, up from $6 million in the preceding twelve months, it said. The company had cash and cash equivalents of $10.4 million as of March 2020.
Based in Wuxi, Jiangsu province, Skillful Craftsman provides online vocational training and virtual simulation experimental training, which allows college students to recreate experiments virtually. In addition, it delivers tech services like software development and cloud services for private companies, academic institutions, and government agencies in China, according to its preliminary prospectus filed Thursday.
The seven-year-old company said it offers 407 vocational training courses in subjects including mechanics, electrical, auto repair, and construction through three online education platforms. As of September 2019, Skillful Craftsman trained 2.6 million fee-paying students.
The company commented on the Covid-19 impact saying the epidemic “may generate business opportunities” as more people have turned to online education.
Skillful Craftsman said it intends to use the proceeds of its public offering to add more online courses and improve its mobile application.
Skillful Craftsman has applied to become publicly traded on the Nasdaq Capital Market under the ticker symbol "NGJY."