IDP Education Limited, a global international student recruiter and co-owner of the IELTS exam is aiming to raise A$331.6m in its initial public offering on the Australian Stock Exchange (ASX).
The Australia-based company said it is looking to sell 125.1 million shares at A$2.65 each in a statement released this week. No general public shares will be available but offers have been extended to Australian and New Zealand broker clients, eligible investors nominated by the company and institutional investors in Australia and certain jurisdictions around the world.
The offer is being managed by Goldman Sachs Australia and Macquarie Capital Limited and share trading begins December 3.
IDP is looking to sell 125.1 million shares at A$2.65 each
The IPO was announced in 2013 when co-owner SEEK, an online job and education company, said it would sell its 50% stake in the company. The remaining 50% of the company is held by Education Australia which is made up of 38 Australian universities.
On completion of the offer, SEEK investments will not hold any shares.
The funding will be used to grow the company’s three business lines: recruitment, IELTS testing and English language operations in Southeast Asia.
“IDP has an organic growth strategy designed to leverage our past investment in our global platform and capitalise on opportunities in the growing international student and high-stakes English language testing markets,” Andrew Barkla, CEO of IDP Education said.
“Our unique global network and diverse business model positions us well to maintain and further strengthen our position as a leader in the dynamic international education market.”
IDP has 89 student recruitment offices in 30 countries and over 400 IELTS test locations in over 50 countries.
In the year ending June 30, IDP placed 26,700 students in courses, administered 825,000 English language tests and taught 60,000 courses in English. According to the prospectus, IDP’s profit has grown each of the last three years and is expected to do so again this year with a net profit forecast of A$35.5m.
The company was established in 1969 and in addition to recruitment and testing operations, it owns English language schools in Southeast Asia and organises education events and conferences globally, including the Australia International Education Conference.
