Puxin Education IPO Review - Asking for 4.9x of Company's Total Acquisition Cost Since 2015

Asia Ex-J Consumer/ Transport analyst

Valerie Law, CFA

Equity Capital Markets

Four Seasons Education Cayman / Equity Capital Markets

<p>Four Seasons Education Cayman (FSE) provides after-school Maths classes, with 33 learning centers in China. The company claims to be the largest after-school Math education service provider in Shanghai, measured by gross billings and number of students. Close to 97% of its gross billings come from operations in Shanghai, as of 6M ended August 2017. FSE aims to raise ~ USD 120m via a listing on NYSE (Source: <a href="http://www.nasdaq.com/article/chinese-tutoring-company-four-seasons-education-files-for-a-120-million-ipo-cm859757" target="_blank">Nasdaq</a>). In this flash note, we provide a few financial metrics and our early thoughts on…</p>

Four Seasons Education Cayman (FSE) provides after-school Maths classes, with 33 learning centers in China. The company claims to be the largest after-school Math education service provider in Shanghai, measured by gross billings and number of students. Close to 97% of its gross billings come from operations in Shanghai, as of 6M ended August 2017. FSE aims to raise ~ USD 120m via a listing on NYSE (Source: Nasdaq). In this flash note, we provide a few financial metrics and our early thoughts on…

Four Seasons Education IPO Early Thoughts: A Small Player in a Highly Fragmented Market