NEW YORK (AP) - Noah Education Holdings Ltd., a Chinese provider of interactive education content, said Monday it expects to raise about $84.1 million from its planned initial public offering, according to a Securities and Exchange Commission filing on Friday.
The company expects the IPO, which totals 9.8 million American Depositary shares, to price between $9.80 and $11.80 per ADS.
Noah Education is selling 8.7 million ADS and a shareholder, Baring Asia II Holdings, is offering the remaining 1.1 million ADS. Each ADS will represent one ordinary share.
Noah Education develops multimedia learning materials covering an array of subjects to complement textbooks used in China's primary and secondary schools. The multimedia content is delivered through handheld digital learning devices, into which its content is embedded or downloaded at the point of sale, at download centers or on the company's Web site. Noah Education also sells electronic dictionaries and recently began offering after-school tutoring programs.
For the year ended June 30, Noah Education reported net income attributable to ordinary shareholders of $6.1 million on revenue of $72.9 million. The company noted that its auditors identified 'several significant deficiencies' in its internal control over financial reporting.
Noah Education plans to use its net proceeds from the IPO to fund expansion and possible acquisitions, to enhance sales and marketing and to develop educational content and expand its delivery platforms. Proceeds will also be used for research and development and for working capital.
Noah Education expects to have 36.7 million ADS outstanding after the IPO.
Deutsche Bank Securities is serving as the lead underwriter for the offering. CIBC World Markets, Thomas Weisel Partners and First Shanghai Securities are also underwriting the IPO.
The company has given the underwriters an option to buy up to 1.5 million additional ADS to cover overallotments.
The company has applied to list its shares on the New York Stock Exchange under the symbol 'NED.'
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