Chinese EdTech NetClass to Raise $17M Through US IPO

NetClass Technology (NTCL), a Shanghai-based education technology startup, has recently filed to raise $17 million through a US initial public offering. According to the company, it is looking to offer 3.8M shares priced between $4 and $5, which would raise around $17M if priced at the midpoint. Underwriters would be given a 45-day option to buy up to 563K additional shares to cover over-allotments. The platform intends to list its shares on Nasdaq under the symbol NTCL. Revere Securities is serving as the sole book-runner.

Incorporated in the Cayman Islands in January 2022, NetClass is a B2B innovative education specialist, providing IT solutions to schools, training institutions, corporations, government agencies (mainly the Shanghai Municipal Education Commission), and other institutions or corporate customers. It also offers SaaS subscription services and application software development.

Its solutions modules include teaching management, campus management, online teaching, online examination, epidemic prevention and control, EDC (Education Chain) blockchain system, lecturer evaluation services, etc. The platform operates through subsidiaries in China. The company’s filing mentioned that the Chinese EdTech plans to use most of the proceeds from the IPO to expand its business and further develop its courseware and technology offerings.

NetClass aims to provide its customers with high-quality and reliable products to maintain long-term sustainable business growth. The company believes it is one of China’s software industry’s leading online education brands. It has advantages in customized design, easy-to-use interface, and knowledge of the industry and market.

The firm has been profitable. For fiscal 2022, NetClass reported a net income of $133K on revenue of $9.3M. NetClass is the latest Chinese EdTech to seek a US listing, joining Ruanyun Edai Technology (RYET), which filed for a $35M IPO last December. Other US-listed Chinese educational platforms include Jianzhi (JZ), Genius Group (GNS), New Oriental Education (EDU) and Golden Sun (GSUN).

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