Chinese E-Tutor Huohua Siwei Heads For US IPO
- January 21, 2021
- 3 minutes read
Huohua Siwei, a Chinese e-tutoring company backed by investors including the Chinese tech giant Tencent and private equity firm KKR, appears to be on its way towards a public listing that could come this year. The company has picked banks including Goldman Sachs and Credit Suisse to work on a public offering in the US, Bloomberg reports.
Huohua Siwei, or Spark Education in English, is a major e-tutoring provider in China, serving children aged 3 to 12. It’s backed by some $443 million in venture funding from investors including Tencent, KKR, The Carlyle Group, Sequoia Capital China, IDG Capital, and GGV Capital.
2020 was a great year for e-tutoring services as the Covid-19 pandemic largely increased the demand for online learning activities. As such, it seems that Huohua Siwei is looking to ride that boom all the way to the public markets. The company is said to be seeking to raise as much as $500 million from a US public offering.
Just like Huohua, another major Chinese e-tutoring provider, Zhangmen, has also been reported to have its eyes on a soon public listing in the US. Zhangmen is a popular online tutoring service with more than 60 million registered users in China.