First Chinese Pre-school Education Group Listed in the US
RYB Education, an education group with 80 self-managed centers, 175 franchised childcare centers, 800+ play centers, 20,000+ registered kids, and 3,000 teachers/care-takers, became the first Chinese pre-school group to be listed in the US. Underwritten by JP Morgan and Credit Suisse, RYB generates an annual revenue of approximately USD 100m and profits close to USD 6m. Chinese media has been mostly outraged with RYB’s potential listing due to its aggressive expansion in recent years, which has resulted in management gaps and employment of unqualified teachers. Furthermore, RYB charges a high tuition fee of over USD800 per month (the average monthly salary in China in 2016 was a little over USD 1,000), and a number of cases accusing teachers of child abuse have become public in recent years. Being the lower entry/less policy-constrained segment of the education chain, the US pre-school sector has attracted many education groups from both China and abroad.