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Ambow makes NYSE debut with 7.5% drop in share price

By Chen Weihua (China Daily)
Updated: 2010-08-06 14:33

NEW YORK - Ambow Education Holding Ltd, which provides tutoring and vocational training in China, has made its debut on the New York Stock Exchange, closing 7.5 percent below its initial public offering (IPO) of $10.

The price for the Beijing-based company closed at $9.25.

Ambow raised $106.8 million through the IPO, $10.6 million short of expectation.

Pricing below expectations has not been unusual this year due to poor market conditions. Some companies have even postponed IPOs.

Huang Jin, president and CEO, said in New York on Thursday that Ambow does not focus on prices. "We focus on the long-term goal and education is for long-term," she said.

She said Ambow has enjoyed a warm welcome from investors.

Huang, who started Ambow in 2000, said the company focuses on two fundamental businesses - to help students find a good school and get a good job.

"We focus on the critical 10 years of most students, from age 12 to 23," she said.

Ambow posted a net loss of $16.6 million last year on revenue of $132.1 million, compared to a net loss of $8 million on revenue of $74.5 million in 2008, an Associated Press report said.

Paul Chow, CFO of Ambow, said this was an accounting problem caused by preference shares and the loss won't exist after the company's IPO.

Ambow operates five K-12 schools, two colleges, 96 tutoring and 16 career-training centers in China.

It is one of the few Chinese education firms on the NYSE. The New Oriental Education & Technology Group Inc went public in 2006.

China Daily