Raffles Edu gets approval to list OUC in HK

OUC visual from the OUC website

Singapore headquartered private education provider Raffles Education Corp has received in-principle approval from the Stock Exchange of Hong Kong for listing its subsidiary Oriental University City Holdings.

This is the second major step towards its IPO as the Singapore Exchange had already issued a no-objection letter earlier this month.

Malaysia’s state investment agency Khazanah Nasional is learnt to have around 10 per cent equity in Raffles Education’s Oriental University City (OUC) that owns and leases educational facilities in China’s Langfang city.

Khazanah, which owns this minority stake through its wholly owned subsidiary, Rawa Investments, had paid around S$63 million about three years ago for its equity holdings in the private education provider.

The company had earlier said that the proposed listing would increase the overall financial capacity of the group, allowing it to deploy resources for growth of its core business – provision of education services – and its other strategic businesses. It had also said that the proposed listing would allow the company to free the resources, which were previously reserved for HKCO group and the Langfang Development Zone Oriental University City Education Consultancy Co Ltd and place it in a better financial position.

Raffles Education has said it will maintain majority control of HKCO after the proposed IPO.

Justifying the move to list its subsidiary, the company has also said  the proposed spin-off would allow the HKCO Group and the remaining group to cater to their distinct businesses, strategies and growth plans. The company added that investors will have a choice of investing separately, in each distinct business, based on their own assessment of each listed entity and taking into account the distinct strategies, functional exposure, risks and returns.

“Differentiation of the two businesses may also attract new investors who are seeking investment opportunities in one or both of the focused business models, thereby creating a wider and more diverse investment base,” Raffles Education had said in an earlier statement.

The group owns and operates OUC, a self-contained campus of one million square metre in Langfang, Hebei, which is approximately 50 km away from Beijing. The OUC campus provides education services to six other universities and colleges with an additional student population of over 19,000, said the group website.

According to its website, the Raffles Group is one of the largest private education provider in the Asia Pacific region. It owns and manages education assets and facilities, education-linked real estate and development across 12 countries through its network of 30 colleges and universities in 29 cities in countries including, Australia, Cambodia, China, India, Indonesia, Malaysia, Mongolia, Philippines, Saudi Arabia, Singapore, Sri Lanka and Thailand.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.