The IPOX® Watch: Koolearn Technology
Company Description
Launched in 2005, Koolearn Technology Holding Limited (operated through Beijing Xuncheng) is the carved out online education platform of New Oriental (NYSE: EDU), the largest private education service provider in China. Koolearn operates online and mobile education platforms that offers online overseas test preparation, college education, and institutional customers-focused vocational educational. The company ceased to offer K-12 and pre-school education at the end of 2021 and shifts to create a livestreaming e-commerce platform that offers agricultural and other products.
Business Model
Koolearn Technology generates revenue mainly through tuition fees for courses and services offered. The company also generates revenue from online sales through its e-commerce platform.
IPO History
On 03/28/2019, Koolearn Technology Holding Limited began trading on the HKEX. The online extracurricular education service provider and e-commerce platform offered 164,513,000 shares at HK$ 10.20 per share, mid-point of its expected price range (HK$9.30 - HK$11.10). Koolearn Technology was valued at ca. HK$9.55 billion at offer with the 15% over-allotment option partially exercised. The shares opened flat at its initial public offering price of HK$10.20 and closed the first day unchanged (0.00%).
Koolearn Technology’s operating entity Beijing Xuncheng was listed on NEEQ (an OTC market in China, known as New Third Board) in March 2017 and delisted in February 2018.
Koolearn Technology Holding Limited was included in the IPOX® International Index (ETF: FPXI US) on 12/19/2022 and currently weighs ca. 0.42% of the portfolio.
