china-education-provider-teaches-investors-about-postipo-rallies

China education provider teaches investors about post-IPO rallies

The opportunity to own first Chinese education stock sees investors pile into New Oriental's offering. Price is fixed 15% above the top of the indicative range.
September 10, 2006
New Oriental Education Technology Group rallied 46.6% in the first two trading days following a heavily oversubscribed initial public offering, reflecting a desire among investors to grab a piece of what is viewed as an exciting new way to play ChinaÆs rise within the global economy.

The first Chinese education company to list on the New York Stock Exchange, New Oriental raised $112.5 million after pricing its 7.5 million American depositary shares at $15 apiece û well above the $11 to $13 indicated price range.

The high price, which valued the company at an adjusted 2007 PE of 22.1 times, was possible after the order book was more than 35 times covered even though bookrunners...
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