Singapore headquartered private education provider Raffles Education Corp plans to raise HK$120.6 million ($20.8 million), by listing its subsidiary in Hong Kong.
Last month, Singapore-listed Raffles Education had received in-principle approval from the Stock Exchange of Hong Kong for listing its subsidiary Oriental University City Holdings. Prior to that, it had got a no-objection letter from the Singapore Exchange.
Oriental University City Holdings (OUC), that owns and leases educational facilities in China’s Langfang city, will sell 45 million shares at HK$2.60 to HK$2.68 each, but the final price will be determined only on January 15, the company said, while adding that the shares will start on the Growth Enterprise Market from the following day.
OUC, a self-contained campus of one million square metre in Langfang, Hebei, which is approximately 50 km away from Beijing, will use the proceeds to build additional dormitories.
The OUC campus provides education services to seven other universities and colleges – Dongfang College of Beijing University of Medicine, the Civil Aviation Management Institute of China, Peking University Founder Technology College, and Beijing City University – with an additional student population of over 19,000, said the group’s website. It has also signed deals with three colleges for short-term courses.
Oriental University City had sales of RMB59.6 million ($11.9 million) and earnings of RMB40.4 million in the year ended June 30, 2014, when compared to the revenues of RMB68.5 million in revenue and RMB113.5 million in earnings during the same period last year.
The company said it was confident that China’s ongoing economic restructuring would generate more demand for skilled labour, and said it believed that ‘contract colleges which focus on training in vocational skills in various industries would be able to benefit from such a trend.
“Oriental University City has also been leasing out its education facilities to vocationally-oriented universities, colleges, schools and educational training centers, and is thus well-positioned to become a leading vocational education training hub in China,” it added.
Oriental University City’s campus site is also close to Beijing Daxing Industrial Development Zone,Tianjin Binhai New Area and Tianjin Jingbin Industrial Zone, where there is a high concentration of foreign and domestic companies engaging in aviation, service industries and information technology. Given its strategic location, the company said it was well-positioned to procure tenancies from more universities, colleges, schools and education training centers.