China Online Education Group, the China-based operator of English language learning platform 51Talk, raised $45.6m in an initial public offering on the New York Stock Exchange on Friday.
The offering provided exits to investors including online gaming platform Duowan Entertainment.
The company priced 2.4 million American depositary shares (ADSs) at $19 each. Existing investors DCM and Sequoia Capital will invest a further $20m through a private placement once the IPO formally closes.
Joint bookrunners Morgan Stanley and Credit Suisse Securities (USA) have the 30-day option to buy another 360,000 shares, which would increase the size of the offering to $52.4m.
51Talk provides an English language learning service to the Chinese market, enabling customers to access interactive, one-to-one English lessons from foreign tutors through an online and mobile platform.
China Online Education had raised $58m in venture funding prior to the offering, according to the filing, most recently securing $20m in an August 2015 series D round featuring Duowan, DCM, Sequoia, Shunwei Capital, Engage Capital Partners and Huaxing Capital Partners.
Duowan owns a 10.4% stake in the company that will be diluted to 8.6% once the IPO and the private placement close. DCM’s share will be cut slightly from 24.1% to 23.9%, Dasheng International Holdings’ from 24% to 19.8%, Sequoia’s from 19.3% to 17.3% and Shunwei’s from 15.3% to 12.7%.