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Chinese nursery education company prepares for $100m IPO in US

Xinhua | Updated: 2017-09-11 10:26
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BEIJING - RYB Education Institution, a Chinese firm providing early childhood education, plans to raise up to $100 million through an IPO in the United States.

The company said in a press release that it has applied for a listing on the New York Stock Exchange under the name "RYB".

Established in 1998, by the end of June the Beijing company had 1,108 kindergartens or play-and-learn centers with revenue of $108 million last year, up from $82.9 million in 2015.

Net profits in H1 rose 19.5 percent from a year earlier to $4.9 million, mainly through increased kindergarten enrollment, with 255 kindergartens in 130 cities and towns at the end of June.

Revenue from kindergartens and play-and-learn centers accounted for over 70 percent of revenue in H1.

More births brought by a change in birth control policy will bring stronger demand for nursery education around 2018, while the supply of kindergarten places will lag behind in the short term, the company predicted.

China has allowed all married couples to have two children since last year.

In 2016, there were 18.7 million live births in China, 11 percent more than in 2015. About 45 percent of them were not a first child.

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