Zhangmen Education, a Chinese online after-school tutoring platform, raised $42 million by offering 3.6 million shares at $11.50, within the range of $11 to $13. Insiders Softbank and Genesis Capital and certain other investors had indicated on up to an aggregate of $40 million worth of ADSs in the offering.
At pricing, the company commands a fully diluted market value of $1.9 billion. The IPO float is just 2.3% of the basic shares outstanding, or 0.2% after indicated buying.
Zhangmen Education offers one-on-one and small-class after-school tutoring services covering all core K-12 academic subjects. The company states that it has been the largest online K-12 tutoring service provider in China by revenue since 2017 and claimed 32% market share in 2020. The company launched its Small Class program in the 3Q20, but generates most of its revenue from its flagship One-on-One program.
Zhangmen Education plans to list on the NYSE under the symbol ZME. Morgan Stanley, Credit Suisse, Citi, CICC, and Macquarie Capital acted as lead managers on the deal.
