Elite Education Group IPO: What Investors Should Know

A company specializing in helping Chinese students study abroad in the U.S. is set to go public by selling 750,000 units in its IPO.

The IPO: Elite Education Group International EEIQ plans on listing units at a price of $8 each. Each unit will include a common share of stock and two warrants.

A Series A warrant will give the buyer the right to buy a common share for $5 within the next five years. A Series B warrant will give the buyer the right to buy a common share for $10 within the next five years.

Net proceeds from the offering will help the company fund its planned expansion.

About Elite Education Group: Quest Holding International is a wholly owned subsidiary of Elite Education Group. Quest Holding helps facilitate study aboard and post study services for Chinese students in the United States.

Quest Holding has a partnership with Miami University of Ohio, one of the oldest public universities in the U.S. Founded in 1809, Miami University of Ohio has 120 undergraduate programs, 60 graduate programs and 13 Ph.D degrees.

Elite Education Group offers turnkey solutions for its students studying abroad. Services include dorm rooms, meal plans, legal services, medical services and guidance.

In 2019, the company had 187 students at Miami University. The total was 134 in fiscal 2020.

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Growth Ahead: The U.S. remains one of the top destinations for Chinese students to study abroad, according to the IPO filing. The rising GDP in China is also contributing to parents in the country spending more on education for their children.

One of the key growth objectives of Elite Education Group is global expansion. This includes expanding services to Hong Kong, Myanmar, Vietnam and Thailand.

Expansion also includes expanding services at Miami University of Ohio by offering additional programs and being available across more of the school’s campuses.

Expansion in Canada and the United Kingdom are also named in the company’s growth plans going forward.

Additional growth plans include opening English language training facilities in China and launching online services for the Miami University.

Financials: Elite Education Group had revenue of $9.1 million in fiscal 2020. The figure was an improvement on the $8.7 million and $6.3 million posted in 2019 and 2018, respectively. The rise in revenue came even with the impact of COVID-19.

Elite Education Group had net income of $1 million in fiscal 2020.