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First High-School Education Group Readies $75 Million U.S. IPO


  • First High-School Education Group has filed proposed terms for its U.S. IPO.
  • The firm provides private high school instruction services in China.
  • FHS has produced growing financial metrics but the IPO appears highly priced, so I'll watch it from the sidelines.
  • Looking for more investing ideas like this one? Get them exclusively at IPO Edge. Learn More »

Quick Take

First High-School Education Group Co. (FHS) has filed to raise $75 million in an IPO of its ADSs representing underlying Class A ordinary shares, according to an F-1 registration statement.

The firm offers high school education and related services in China.

While FHS has produced positive financial results, Chinese education companies have been poor performers on U.S. markets and the IPO appears expensive, so I'll pass on the IPO.

Company & Technology

Kunming, China-based First High-School was founded to develop a network of private high school education campuses in Western China.

Management is headed by founder, Chairman and CEO Shaowei Zhang, who previously established the Kunming Qihang Education and Training School and Kunming Epoch Giant Tutorial School.

The company’s primary offerings include:

  • 19 schools

  • 14 high school programs

  • 7 middle school programs

  • 4 tutorial school programs

First High-School has received at least $32.6 million from investors including Longwater Topco, Visionsky Group, Long-Spring Education, Minglin Wu and Brightenwit Group.

The firm has focused on developing and maintaining close relationships with local governments, working with partners who contribute land and school facilities which the company operates.

The company markets its services via offline methods and word of mouth to maximize its school utilization rate.

FHS has operations in four provinces within China, as shown on the map below.

Selling and Marketing expenses as a percentage of total revenue have fluctuated as revenues have increased, as the figures below indicate:

Selling and Marketing

Expenses vs. Revenue



Nine Mos. Ended Sept. 30, 2020






Source: Company registration statement

The Selling and Marketing efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Selling and Marketing spend, dropped to 10.8x in the most recent reporting period, as shown

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This article was written by

Donovan Jones profile picture

Donovan Jones is an IPO research specialist with 15 years of experience identifying opportunities for IPOs. He focuses on high-growth technology, consumer, and life science companies.

He leads the investing group IPO Edge which offers: actionable information on growth stocks through first look S-1 filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates. Learn more.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (1)

azbroker profile picture
Anybody watching this one, has traded down to 9 m market cap but claims to still be making money?
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