Zhangmen Education opens for trading at $17.74, up about 54% from IPO price

MarketWatch2021-06-08

(June 8) Zhangmen Education opens for trading at $17.74, up about 54% from IPO price.

Zhangmen Education Inc.ZME, is set to go public Tuesday, as the China-based online education company's initial public offering priced overnight to value the company at about $1.8 billion.

The IPO priced at $11.50 per American depositary share (ADS), within the expected pricing range of between $11 and $13 per ADS. The company sold 3.62 million ADS in the IPO to raise $41.7 million. Each ADS represented nine ordinary shares, and the company has a total of 1.42 billion ordinary shares outstanding, including 1.22 billion Class A ordinary shares.

The stock is expected to begin trading on the NYSE under the ticker symbol "ZME."

Morgan Stanley and Credit Suisse were the joint book-running managers. The company recorded a net loss of RMB1.01 billion ($154.5 million) on revenue of RMB4.02 billion ($613.3 million) in 2020, after a loss of RMB1.50 billion on revenue of RMB2.67 billion in 2019.

The company is going public at a time that the Renaissance IPO ETFIPO,+1.90%has gained 5.4% over the past three months, iShares MSCI China ETFMCHI,-0.89%has edged up 0.8% and the S&P 500SPX,-0.08%has advanced 10.6%.

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Comments

  • tungngie
    2021-06-09
    tungngie
    Oo. Surprise that education company still going listed. Just beware that china is rising its control over education field as it is important for development of china's future. Maybe this company has passed the government check. Hehe. Well, overall i still think online education is a future thing and will get important overtime.
  • Greenbull18
    2021-06-09
    Greenbull18
    [Miser] 
  • IZLIN
    2021-06-09
    IZLIN
    @Meow17@Sagi08@simplydkam[Surprised] 
  • ming22
    2021-06-09
    ming22
    Wow, good profit [美金] 
  • banditmojo
    2021-06-09
    banditmojo
    Keep rising or drop?
  • Lingclass
    2021-06-09
    Lingclass
    Education field is always neglected too. Pls like and comment! Thank you!
    • CWen: 
      please comment back
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