Fenbi.com, a Chinese education platform, plans an initial public offering on the Hong Kong exchange. Bloomberg reported that the Beijing-based company expects to attract about $300 million in the IPO on Monday, Feb. 28.
Fenbi was founded in 2015. It has operations in 30 provinces across China, offering online and offline lessons for those who want to become civil servants or teachers through exams.
The first-time share sale would come after the Chinese regime’s crackdown on tutoring wiped out billions of dollars in market value from online tutoring firms.
In July 2021, Beijing banned companies that teach the school curriculum from making profits, raising capital, or going public. The regulations focus on compulsory education, which refers to kindergarten to ninth grade, or K-9.
The crackdown has recently expanded to include high-school classes.
The Ministry of Education announced on Feb. 8 that it would guide local authorities on how to manage high-school curriculum tutoring in the same way that K-9 tutoring was regulated.
Nikkei Asia reported that the crackdown had dealt a heavy blow to the industry upstarts.
Yuanfudao, backed by Tencent Holdings, has a market capitalization of $15.5 billion had roughly 60,000 employees in April, but that number dropped to 30,000 to 40,000 in September.
Zuoyebang, its competitor, has received investments from Alibaba Group Holding and a SoftBank Group-affiliated fund. According to the Securities Times, Zuoyebang also closed three of its 14 outlets in August.
Senior firms in the education sector were in the same trouble.
New Oriental said on Nov. 7, 2021, that it would close nearly 1,500 training centers. Dashan Education, listed in Hong Kong, announced that it slashed its 102 locations to 56 by last September. Qiwen Education, which operates 15 schools in Shanghai, closed its doors in late August, 2021.