Tarena International, a China-based provider of professional IT education services, has raised $137.7m from an initial public offering on the Nasdaq market in the US, giving investor IDG Capital Partners a partial exit.
Tarena issued 11.5 million shares and existing shareholders 3.8 million, priced at $9.00 each. It may invest the proceeds in developing additional courses, developing its learning centre network, or expanding its sales and marketing and infrastructure.
IDG Capital Partners, the China-based corporate venturing unit owned by IT media conglomerate IDG, held almost 8.9 million shares equating to a 23.6% stake in Tarena. It sold about 2.15 million of them for a $19.3m return, and retains an 11.8% stake.
Private equity firm Jafco, which held a 15% stake prior to the offering, sold 1.65 million shares for a $14.85m return. Goldman Sachs, which held a 29% share of Tarena, did not divest any shares, and as part of its role as one of the underwriters actually increased its stake to 32.2%.
Goldman Sachs’ Asia branch and Credit Suisse Securities acted as joint bookrunners, while Jefferies served as lead manager and Oppenheimer & Co. as co-manager. Due to conflict of interest laws, Goldman Sachs will be prevented from making sales to discretionary accounts without the permission of the account holder and another underwriter.