Tarena International, a provider of IT professional education services in China, has priced its $137.7 million Nasdaq listing at $9 per American Depositary Share, setting a favourable precedent as US stock markets gear up for a wave of Chinese technology offerings.
The initial public offering of shares, priced in the middle of its $8-$10 pricing range, attracted considerable interest from investors and the book was covered an unspecified number of times, according to two sources close to the deal.
One of the sources added that the bookrunners Credit Suisse and Goldman Sachs could have priced the deal at the top end of its indicative range but that they decided against it at the last minute to ensure a strong aftermarket performance. The shares will begin trading at the US open on Thursday.
The Tarena offering comprises 15.3 million ADSs, three quarters of which are from the company, with the rest coming from existing shareholders IDG Technology and JAFCO Asia Technology Fund.
The offering also secured NYSE-listed language education institution New Oriental Education & Technology Group as a cornerstone investor for a subscription of $13.5 million.
Chinese IPO rush
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