Yuhua sets cautious target on $246m IPO

The Henan-based operator of private schools aims for a conservative valuation despite market recovery.

Chinese private school operator China Yuhua Education started officially pitching its Hong Kong initial public offering to investors on Tuesday, taking a cautious approach on its valuation despite the recent recovery in market sentiment.

After gauging investor interest for a week, the Henan-based school operator launched the 750 million-share offer with an initial fundraising target of between HK$1.5 billion and HK$1.9 billion $191 million to $246 million on a pre-greenshoe basis.

The shares are being offered at between HK$1.98 and HK$2.54 each, while the deal itself has a standard structure of a 25% free float, a 15% greenshoe option and a...

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