17 Education & Technology Group Inc. becomes the latest Chinese company to file for a U.S. initial public offering, seeking to raise up to $100 million on the Nasdaq Global Market.
“It takes a village to educate a child,” says 17Education in its prospectus filed Friday with the U.S. Securities and Exchange Commission. The tech-driven company provides smart in-school services to more than 70,000 education companies under a “in-school + after-school” model uniting K-12 learning and after-school tutoring.
The Beijing-based company booked $118.9 million in revenue for the nine months through September, recording 277% year-over-year growth. Net loss widened 24% to $143.6 million in the same period. For 2019, 17Education reported revenue of $59.8 million on losses of $141.9 million.
The company said it intends to use the proceeds from its IPO for improving its after-school tutoring solutions and enhancing the product offerings and educational content for in-school classes. It also aims to boost its technology infrastructure and sales and marketing, and working capital.
17Education was founded by chairman and CEO Andy Chang Liu, who previously served in executive and management positions at China’s top education providers, New Oriental Education (NYSE: EDU) and TAL Education Group (NYSE: TAL).
The IPO is underwritten by big banks, Goldman Sachs (Asia) L.L.C., Morgan Stanley & Co. LLC, and BofA Securities, Inc., suggesting a higher deal size than the placeholder amount of $100 million. The exact terms have yet to be announced.
17Education seeks to become publicly traded under the ticker symbol “YQ.”