South China Vocational Education Group, a private vocational education service provider in the Greater Bay Area, has raised net proceeds of around HK$457.1million (£42.5 million) through an IPO in Hong Kong after pricing its shares at HK$1.59 each.

The company intends to apply the net proceeds from the global offering as follows: 

• Approximately 70%, or HK$320 million, will be used primarily to upgrade Lingnan Institute of Technology from an associate college to a vocational university

• Approximately 20%, or HK$91.4 million, will be used primarily to acquire other schools and other education service providers, and

• Approximately 10% or HK$45.7 million, will be used to fund working capital and for general corporate purposes. 

If the over-allotment option is exercised in full, the company will receive an additional HK$79.7 million for 50.1 million shares, which will be applied to the three purposes mentioned on a pro-rata basis. 

Date published: 13 July 2021

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