NetEase plans to list its online education arm Youdao in US
 
China Knowledge Online
Jul 16, 2019
Category:
Tags:

Jul 16, 2019 (China Knowledge) - NetEase is planning to list online education subdivision, Youdao in the United States, which is estimated to raise at least RMB 300 mln. The valuation of Youdao is said to reach about RMB 2 bln.

NetEase's first round of financing was completed last April at a post-money valuation of RMB 1.12 bln. Working with Morgan Stanley and Citigroup on the share sale, NetEase intends to file the IPO as early as in this year's third quarter. The size and timeline of this IPO still remain unsettled, as the filing is still in the early stage.

The China-US trade disputes and the downward pressure on the global economy have dampened capital-raising worldwide. NetEase hopes to attract more investors by the listing of Youdao.

NetEase funded Youdao in 2006 and has remolded it into an internet education platform about 5 years ago. This subdivision now provides services, such as online dictionaries, math courses and prep classes for important certification tests.

Listing Youdao also reveals the company's intention of grabbing a bigger share of the promising online education market. According to statistics from iResearch, the revenue of online education from children from kindergarten to 12th grade could see an annual rise of 38% by 2022.

 
 
Contact
Company China Knowledge Online
Contact Editor
Telephone +65 6235 8468
E-mail
Website www.chinaknowledge.com