First Capital Securities Limited (“First Capital Securities”), a wholly-owned subsidiary of China First Capital Group Limited (“CFCG” or the “Group”; stock code: 1269), has served as a co-lead manager of Minsheng Education Group Company Limited (“Minsheng Education”; stock code: 1569) which was successfully listed and commenced trading on the Main Board of The Stock Exchange of Hong Kong Limited today. This morning, Dr. Wilson Sea, the Chairman of the Board and Executive Director of CFCG, Mr. Wang Hui, the Chief Financial Officer, and Ms. Li Minwen, the Chief Operating Officer, attended the listing ceremony of Minsheng Education and had friendly talks with Mr. Li Xuechun, the Chairman of Minsheng Education, and his management team, while congratulating them on the listing and the booming business.
Minsheng Education offered 1 billion shares under the global offering, comprising 100 million Hong Kong offer shares under the Hong Kong public offering and 900 million international placing Shares. The public offering received good response from investors and was oversubscribed 1.06 times. Based on the offer price of HK$1.38 per share, the net proceeds was approximately HK$1.306 billion.
On its first day of listing, Minsheng Education gained strong momentum. It recorded the highest at HK$1.70, representing an increase of approximately 23% as compared to the offer price of HK$1.38, and closed at HK$1.51. The turnover reached HK$651 million.
Minsheng Education is one of the top ten private provider of higher education in China. Currently, it owns and operates four collegess, namely, Chongqing College of Humanities, Science and Technology, Pass College of Chongqing Technology and Business University, Chongqing Vocational College of Applied Technology and Inner Mongolia Fengzhou Vocational College (Qingcheng Branch). The Company primarily offers formal university-level education, including formal undergraduate education and junior college education, as well as secondary vocational education. As of 31 October 2016, it had approximately 32,690 students enrolled in its schools and a total of approximately 1,090 teachers. During the past three years, the initial graduate employment rate was around 90%.
First Capital Securities acted as a joint bookrunner and joint lead manager for China YuHua Education Corporation Limited (stock code: 6169) last month. Prior to that, it also participated in the listings of Postal Savings Bank of China Co., Ltd. (stock code: 1658), Human Health Holdings Limited (stock code: 1419) and China Golden Classic Group Limited (stock code: 8281) as the joint bookrunner and joint lead manager.
Mr. He Yaobin, the Deputy Chief Executive Officer of CFCG said, “The Chinese government has implemented various policies to support the education sector and creates a golden age for the private education industry. At the same time, the increase in enrollment rate driven by the popularisation of higher education in China attracts capital to private higher education. Leveraging the full industrial chain of CFCG and First Capital Fund in the education industry, First Capital Securities enjoys abundant resources and advantages, which it will use to develop education securities service as a niche business. Through optimizing CFCG’s integrated operation platform driven by "education + finance", it will enhance value of education institutions and maximize shareholders’ return.”