China is tightening its squeeze on its online education business, forcing start-ups that once had the momentum to drop flying birds to shelve their initial public offering (IPO) plans.
Education-related tech companies in China’s Internet industry after the crisis of the new coronavirusOne of the hottest investment destinations last yearAlibaba Group andTencent Holdings,It received over 10 billion dollars (about 197 trillion yen) from major companies such as SoftBank Group. But then Chinese authorities intervened.
Xi Jinping Jintao March this year, suggested that the rapid increase of after-school teaching service is over a great deal of pressure on our children. When they signaled their personal interest in curbing overshoots, state media warned and penalized them for being a brute force approach to China’s educational fever. The Ministry of Education is currently planning to set up the first specialized department to oversee all private education platforms, people familiar with the matter said.
In response to these government movements, some listing plans, which were expected to become super-large IPOs if realized, have suddenly stopped.According to the people concerned, with Tencent VIP KidSpark Shiei has postponed its listing in the United States, despite working with banks for several months.
According to one of the people concerned, Alibaba-fundedIt is highly probable that the workforce will not be able to achieve the goal of listing by the end of the year. In addition, Tencent-supported tutorial (Beijing Monkey Power Education Technology)It has the highest valuation of $ 15.5 billion in the industry, but has no plans to start preparing for an IPO soon, officials said on condition of anonymity as an internal affair.
Sarusuke declined to comment.With workSpark Thought did not respond to the request for comment.
A VIP Kid spokeswoman did not comment on the IPO plan, but said he was keeping an eye on the latest developments in the education sector.
Original title:China Wrecks IPO Plans for High-Flying Education Startups (1)（抜粋）