The expanding extra-curricular private education market is facing an increase in scrutiny and regulations from Beijing, however, Chinese tutoring and higher education operators are still preparing to initiate offshore IPOs before restrictions come into effect, reports the South China Morning Post.
South China Vocational Education Group operates private junior college programs and is looking to raise $100 million in Hong Kong. An online one-on-one tutoring group, Zhangmen Education is seeking a $500 million IPO on the New York Stock Exchange. Both companies are able to start selling the IPOs to investors as early as over the next two months.
These companies are set to beat the tightening regulations that could see a reduction in the amount of Chinese tutoring organizations able to get the blessing to list offshore from regulators, slowing down their fundraising pace.