NOAH Education Holdings Ltd, a Chinese producer and distributor of electronic learning products, will launch its initial public offering on the New York Stock Exchange on Thursday.

The company plans to offer 9.8 million American Depositary shares at a price range of US$9.80 to US$11.80 per share. It plans to use its net proceeds from the IPO to fund expansion and possible acquisitions, to enhance sales and marketing and to develop educational content and expand its delivery platforms, it said.

Proceeds will also be used for research and development and for working capital.

At the beginning of the year, the company had expected to be the first Chinese firm to debut on the AIM, the London Stock Exchange’s market for smaller companies, through a global offer.

However, it was unable to generate interest from investors in North America, despite attracting funds in both London and Hong Kong.

Based in Shenzhen in south China’s Guangdong Province, Noah Education produces hand-held digital learning devices and multimedia learning materials covering an array of subjects to complement textbooks in China’s primary and secondary schools.

Following New Oriental, Noah Education will be the second company in the country’s education industry to list on the NYSE.

Twenty-nine companies from the Chinese mainland have listed on the NYSE with a market value totaling US$1.1 trillion.

Noah Education reported profit margins of 39 million yuan, 26.6 million yuan and 66.4 million yuan in the fiscal years from 2005 to 2007.

Xinhua