(Bloomberg) -- China East Education Holdings Ltd., a provider of vocational training, started taking investor orders Monday for a Hong Kong initial public offering that could raise as much as $680 million.
The Hefei, Anhui-based company is offering 435.8 million shares at HK$9.80 to HK$12.26 apiece, according to terms for the deal obtained by Bloomberg. The price range implies a market capitalization of $2.7 billion to $3.4 billion, the terms show.
At $544 million, assuming bottom-end pricing, East Education’s share sale would be the largest education listing globally, trumping the $490 million offering by U.S. education service provider Laureate Education Inc. in 2017, according to data compiled by Bloomberg.
The price range s East Education at 19.4 times to 24.3 times the company’s estimated 2019 earnings, people with knowledge of the matter have said. Those figures assumed a so-called over-allotment option isn’t exercised, the people said.
Anatole Investment Management agreed to invest $35 million in East Education’s IPO as a cornerstone investor, the terms show. The company aims to price the offering June 4 before starting trading June 12.
East Education runs vocational schools specialized in culinary, information technology and auto services, according to a preliminary prospectus filed to the Hong Kong stock exchange. BNP Paribas SA is sole sponsor for the offering, the prospectus shows.
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