Nearly one year after submitting its initial filing, Chinese education company Jianzhi Education Technology (JZ) has set terms for its US IPO. The company’s Nasdaq listing could come as soon as this month.
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A provider of digital educational content, Jianzhi plans to raise $30 million at a $363 million market cap. It is coming public with about $74 million in annual sales (+17% y/y) and $8 million in earnings (-41% y/y).
Jianzhi would be the second China-based education company to IPO this year, following micro-cap Golden Sun Education (GSUN), which went public in June. In the last five years, there have been 12 US IPOs from Chinese education companies. The group averages a -44% return from offer, with just one (GSUN) trading above issue.
Regulatory uncertainty effectively barred most US listings from China in mid-2021, as Beijing cracked down on foreign listings. At the same time, China’s private education sector was crushed when the country shut down the for-profit tutoring industry. Since then, the country’s regulator has clarified its stance on foreign listings, spurring the return of small Chinese issuers to the US IPO market.
