Zhonggong Education to List in Mainland China
China’s two education giant groups, New Oriental and TAL (Haoweilai), were listed on the Nasdaq in 2006 and 2010 respectively, while other education groups such as Rongjian, Yuhua, Minsheng and 8 others chose to be listed through the Hong Kong stock exchange.
Zhonggong Education Group is the very first education group aiming to be listed in China’s A shares since 2015, when Xintong Education was listed. Compared to other companies listed, which mainly focus on language or K-12 training, Zhongdong provides training to university graduates who wish to pursue a career as a public servant.
Each year, over 1.4 million graduates use Zhongdong’s training service, which equates to approximately 17% of annual university graduates. It is forecasted that the company will be valued at RMB 4 billion (USD 950m) and the company will see 60% gross revenue; much larger figures than any previously-listed education company. Currently, it is estimated that China’s public servants/government positions only compromise approximately 5% of the total job market, whereas in developing countries this figure tends to be 10-20%.Zhongdong’s founder, LI Yongxin, graduated from Peking University in 1999.