Sequoia's China Maple Leaf Education files for HK IPO

The documents give no indication of the number of shares to be sold or the pricing of the offering.

The group operates seven high schools, seven middle schools, six elementary schools, 11 pre-schools and two foreign national schools across eight Chinese cities, including Dalian, Chongqing, Tianjin and Shanghai. It claims to have an approximately 7.5% market share in the fragmented international school market in China, based on student enrollment at the end of 2013.

Sequoia invested RMB180 million ($29 million) in Maple Leaf in 2008, taking roughly a 20% stake.

The company reported revenues of RMB471.2 million last year, compared to RMB413.5 million and RMB346.1 million in 2012 and 2012, respectively. Net profit came to RMB105 million in 2013, down marginally on the previous year.

China's fundamental education industry was worth about RMB1.8 trillion last year, including government's expenditures, private school funding, donations and revenues generated by schools' teaching. This compares to RMB922.5 billion in 2009, according to Frost & Sullivan. The international school market generated RMB18.4 billion in revenue last year, up from RMB8 billion in 2009.

CLSA and BNP Paribas are joint sponsors for the IPO.

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• Topics
• Greater China
• Exits
• China
• Hong Kong (China)
• Education
• Sequoia Capital
• IPO
• Exit