14 March 2018, China First Capital Group Limited (“CFCG” or the “Group”, stock code: 1269), principally engages in education industry operation and financial service business, is pleased to announce that its wholly-owned subsidiary First Capital Securities Limited (“First Capital Securities”) has acted as the Joint Bookrunner and Joint Lead Manager for the listing of China Xinhua Education Group Limited (“Xinhua Education”, stock code: 2779), which has commenced its Public Offering today.

Xinhua Education intends to offer an aggregate of 400 million Offer Shares under the Global Offering, consisting of 40 million Hong Kong Offer Shares, and 360 million International Offer Shares. The offer price ranges between HK$2.83 and HK$3.69 per share. Net proceeds from the Global Offering are estimated to be approximately 1.476 billion Hong Kong dollars. The Hong Kong Public Offer begins on 14 March 2018 (Wednesday) and ends on 19 March 2018 (Monday). Dealings in Xinhua Education’s Shares are expected to commence on the Main Board of The Stock Exchange of Hong Kong Limited on 26 March 2018 (Monday). Macquarie Capital Limited is the Sole Sponsor; while Macquarie Capital Limited and ABCI Capital Limited are the Joint Global Coordinators. Macquarie Capital Limited, ABCI Capital Limited, CMB International Capital Limited and First Capital Securities Limited are the Joint Bookrunners; Macquarie Capital Limited, ABCI Securities Company Limited, CMB International Capital Limited and First Capital Securities Limited are the Joint Lead Managers of the listing. Meanwhile, China New City Commercial Development Limited and BOCOM International Prosperity Investment Limited have entered into cornerstone investment agreements with Xinhua Education, subscribing US$10 million Shares respectively with a lock-up period of six months.

Xinhua Education is a leading private higher education group located in the Yangtze River Delta, mainly focuses on providing higher education and vocational education in a wide selection of applied science related fields. It currently operates two institutions in the Yangtze River Delta, namely Xinhua University, which is a private formal higher education institution, and Xinhua School, which is a private secondary vocational school. According to Frost and Sullivan, Xinhua Education was the largest private formal higher education provider in the Yangtze River Delta in terms of full time student enrollment as of December 31 2016; while Xinhua University was largest private specialized secondary school in Anhui Province in terms of student enrollment as of December 31 2016. Xinhua Education’s fundamental education mission is“to serve our country through education” (興教報國), while its aim is to cultivate high quality talents with applicable skills, potential for development and ability and and willingness to keep learning.

First Capital Securities has previously participated in a number of listing projects of Chinese education enterprises, such as being the Joint Bookrunner and Joint Lead Manager for China YuHua Education Corporation Limited (stock code: 6169) and China New Higher Education Group Limited (stock code: 2001), and being the Joint Lead Manager of Minsheng Education Group Company Limited (stock code: 1569). Bloomberg earlier announced a ranking list of underwriters of IPO in 2017; First Capital Securities placed 21th on the list with an approximately 1.40% share of the market, while First Capital Securities placed 9th in terms of the number of IPO projects handled among Chinese underwriters.

CFCG said, “Regardless of the advantages of resources in the education industry or its own professional qualifications, the participation of First Capital Securities in numbers of listing projects within two years has proven strengths of the Group. With more private education enterprises being listed in Hong Kong, the Group will actively seize the market opportunities by enhancing the development of securities dealing related business, and work in alignment with the Group’s dual-pronged strategy of ‘Education Operation plus Financial Services’. We believe that by providing diversified channels and bringing lucrative returns for investors, win-win results can be achieved.”