TAL Education Group (NYSE:XRS) is the largest Chinese after-school tutoring service by revenue. The company tutors students in grades K-12 in the core academic subjects such as mathematics, English, Chinese, physics, chemistry and biology. The tutoring services are administed through small classes, one-on-one, and online courses with varying fees associated with each. The company operates 109 learning centers and 87 service centers across China, but primarily in Beijing, Shanghai, Shenzhen, Guangzhou, Tianjin, and Wuhan.
The company hopes to take advantage of the rise of China's middle class and the general increased interest in education to foster continued growth. The company has managed to increase its enrollment size from 68K in 2008 to 383K in 2010. In addition, the tutoring market in China is highly fragmented. There is not individual player which makes up more than 1% of the market share. TAL Education hopes to take advantage of this fragmentation by growing without facing any unified competitors.
The company's initial public offering of stock on the NYSE occurred on October 19, 2010. The company offered 12M shares each for $10. This was at the high high end of the initial price range of $8-$10. The IPO raised a total of $120M. The lead underwriters of the deal were Credit Suisse Group (CS) and Morgan Stanley (MS).
TAL Education has been able to grow its revenues over the past 3 years. In 2008, it reported total revenue of $8.9M, and in 2010, it reported $70M in total revenue. The company has been able to increase net income as well. In 2008, its Net Income figure was $1.5M, while in 2010, it reported $14M.