Xueda Education Group raised US$127.6 million from an initial public offering of 13.4 million American depositary shares. Based in Beijing, Xueda provides tutoring services for 54,000 primary and secondary school students in China. Its focus is on one-on-one tutoring sessions. Since it opened its first tutoring center in 2004, it has grown to 157 learning centers in 44 cities.
Net revenue increased throughout the economic downturn, but the company has generated years of net losses. It booked a profit of US$12.2 million in the first half of this year compared with US$2.4 million in the same period of 2009, but warns it may not be profitable in the future.
Canadian Business Online reports the company plans to use about US$90 million of the IPO proceeds to improve its operating platform and technology and offer new services.
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