Apr 4 2014, 4:17pm CDT | by Forbes
As excitement builds over the IPO of Alibaba in New York, IT education service Tarena International became the first listing of the year from China as a handful of Chinese companies look to go public this quarter in the U.S.
Silicon Dragon interviewed Shaoyun Han, Founder, Chairman and Chief Executive Officer, on Tarena’s initial day of trading on NASDAQ. He said the IPO is a milestone event and a profile raiser for the company. He expects revenues to increase 50 percent this year and 30 percent in 2015 for Tarena, which counts $92.8 million in revenues. The fast growth is not so atypical of IT-related companies going after opportunities in a still-heated tech economy.
Proceeds from the $138 million raised at the IPO — which saw the stock price rise by 20% to $10.80 on the opening day – will be used to improve training centers in 33 cities across China and to make acquisitions as the market leader in the IT training space expands. The Chinese startup has financial backing from IDG Ventures and JAFCO Ventures and a private placement totaling $30 million, said the founder, who formed Tarena in 2001.
Chinese companies are recovering from the doldrums of 2012 when only two listed in the U.S. – VIPShop and social gaming and networking startup YY. Last year, eight China-based tech companies went public in the U.S. See Forbes post, rebound.
With a flurry of big-ticket acquisitions by the giant Internet companies in China — Tencent, Alibaba and Baidu — founders of small Chinese businesses have trade deals as an alternative exit route to cash out from their hard entrepreneurial work. It will be interesting to watch how the IPO story unfolds this year after the roller coaster of the past two years.
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