Youdao, a Chinese online education platform being spun out of NetEase, announced terms for its US IPO on Tuesday.
The Hangzhou, China-based company plans to raise $92 million by offering 5.6 million ADSs at a price range of $15 to $18. Insiders intend to purchase $20 million worth of shares in the offering. At the midpoint of the proposed range, Youdao would command a fully diluted market value of $2.0 billion. There will also be a $125 million concurrent private placement to Orbis.
Youdao was founded in 2006 and booked $135 million in sales for the 12 months ended June 30, 2019. It plans to list on the NYSE under the symbol DAO. It had been on our Private Company Watchlist since August 2019. Citi, Morgan Stanley, CICC, Credit Suisse and HSBC Corporation are the joint bookrunners on the deal.
