Ambow Education Holding (AMBO)

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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Remi Cossart

Ambow Education Holding (NYSE:AMBO) provides education and career services to students and young professionals in China. The company focuses on helping students get admitted to top secondary and post-secondary schools and on helping the graduates of these schools to obtain high-level positions in the workforce. The company has spread itself across 30 of the 31 provinces in China and has established 5 K-12 schools, 96 tutoring centers, 2 colleges, and 16 career enhancement centers. In addition to teaching and tutoring services, Ambow Education also provides test preparation services.^[1]

The demand for the education and career services that Ambow offers are rising in China. The rising income has allowed middle class Chinese to pursue higher education. There is also an increased demand to differentiate oneself in order to achieve higher positions. The K-12 services that Ambow provides, also serve as a child care. With both parents working or at school, Ambow's tutoring for young children also acts as a child care service.^[2]

The company's initial public offering of stock on the NYSE and occurred on August 4th, 2010. Its initial price range was $10-$12, and it price at the low end at $10. The company sold 10.7M shares, making the deal worth $107M. The lead underwriters of the deal are J P Morgan Chase (JPM) and Goldman Sachs Group (GS)^[3]

Ambow has seen both revenue and net income rise in the years leading up to its IPO. Revenue in 2009 was 760RMB (approximately $111M), which constituted a 62% increase from the 470RMB revenue reported in 2008. Net income in 2009 rose by 106% as compared to 2008, or 67RMB up to 138RMB.^[4]

References

1. ↑ AMBO F-1 2010 "Prospectus Summary" pg 1
2. ↑ McClatchy "Chinese after-school tutoring also serves as child care" 28 June 2010
3. ↑ Renaissance Capital - IPO "Ambow Education Holding (AMBO)
4. ↑ AMBO F-1 2010 "Summary consolidated financial and operating data" pg 14