Chinese ADS IPO Filing: BJB Career Education Company (BJB)

Last night there was an initial public offering filing from a company called BJB Career Education Company, Limited.  This is a Chinese IT training company and it plans to list its ADS’s on the NYSE under the stock ticker “BJB.”  No financial terms of the deal were announced in the first filing from the company, but its amended filing showed the typical “up to $100 million in shares sold.”  It did list the underwriters as Credit Suisse and Goldman Sachs as the book-runners, and William Blair and Piper Jaffray as co-managers in the offering.

The company claims a 39.8% market share in 2008.  For context, the company noted that this is 3-times the combined market share of the next two largest competitors. BJBC’s revenues increased by 79.5% from RMB183.8 million in 2007 to RMB329.9 million ($48.3 million) in 2008.  It also noted that revenues increased by 27.8% from RMB148.0 million for the six months ended June 30, 2008 to RMB189.1 million ($27.7 million) for the six months ended June 30, 2009, of which RMB41.0 million ($6.0 million) were franchise fee revenues.

It also noted some 227,000 students enrolled in 2008 and it has 234 training centers. As of September 30, 2009, 219, or 93.6%, of BJB’s training centers are franchised training centers, and 15, or 6.4%, of training centers are company-owned training centers.

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JON C. OGG
OCTOBER 15, 2009