BEIJING, Oct. 29, 2018 /PRNewswire/ -- On September 27, Liulishuo, the leading Chinese education tech company, was listed on the New York Stock Exchange. Liulishuo is a Ucommune corporate member, based at the Shanghai Chanyang Valley location.
The company's co-founder and CEO Wang Yi pressed the start button and Liulishuo (NYSE: LAIX) IPO launched at $12.50 per share. By 10:08, the first transaction was completed and the opening price was fixed at $16.00, up $3.50 over the issue price. The underwriters were Morgan Stanley and Goldman Sachs (Asia).
Education, Version 3.0
Launched in 2012, Liulishuo is one of the first companies to successfully integrate AI and education with its pioneering English language programs, which provide users with customized, efficient learning experiences. The company's many products include IELTS test prep, "fluent reading," and pronunciation lessons.
Liulishuo calls their model, "Education 3.0," in contrast with 1.0 -- offline self-learning -- and 2.0 -- teacher-based learning. In some cases, Education 3.0's AI-driven products can replace real-life teachers and provide an even more personalized learning experience.
Liulishuo raised 71.9 million US dollars with the September offering, putting the company's market cap at more than 600 million dollars. After the IPO, Liulishuo's directors and senior executives hold for 51.3% of the share capital and 89.6% of voting rights.
Large user pool means potential revenue growth
Liulishuo reached 83.8 million registered users worldwide as of June 30, 2018. In the first half of 2018, the number of paid users broke 1 million.
With the continued growth of paying users, Liulishuo revenues are also rising rapidly. The company's revenue in 2016 and 2017 was 12.33 million yuan and 165 million yuan (25.44 million US dollars). Liulishuo said that revenue in the first half of 2018 was 232 million (about 35.1 million US dollars), also much higher than the same period in 2017.
Further, many of the annual users have not been fully counted yet. Therefore, Liulishuo that the actual income may be higher than the report number.
"LAIX": Change Education Focusing on the Future
Liulishuo said that the new name of its group brand was indirectly announced through the prospectus and stock code: LAIX, the Chinese name has not been determined yet. "LAIX" stands for Life empowered by AI to reach (X) infinite possibilities.
LAIX will continue developing AI technology like speech recognition, deep learning and adaptive learning to create a smarter AI teacher.
According to co-founder and CEO Wang Yi, the funds raised by the IPO will be used for R&D, sales and marketing, as well as general corporate purposes, including potential strategic investments and acquisitions.
Ucommune: Liulishuo's home base
Ucommune is the first unicorn-level enterprise in China's coworking industry. Setting the benchmark for office sharing industry brands, Ucommune has deployed 180 shared office spaces in 35 cities around the world, helping nearly 10,000 member companies realize their dreams. In addition to Liulishuo, Ucommune's members also include KEEP, Logic Thinking, JoyRun, ByteDance, Kuaishou, Tiktok, Bilibili, Zhuguagua, ofo, mobike.
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About ucommune:
Founded in 2015 by real-estate veteran Dr. Mao Daqing, Ucommune (is a leading co-working space provider in China offering long-term leasing, hot desk and corporate-customization solutions and professional services across a broad spectrum for small-to-medium enterprises. Backed by renowned investors such as Sequoia Capital, Zhen Fund, Noah Wealth Management, Sinovation Ventures, Ucommuneposts a valuation of US$1.8 billion after pre-D round and acquisition of Fountain, Woo Space, Wedo Space, Workingdom and New space as of 1 Oct 2018 and has grown to cover over 200 locations in over 37 cities globally, including but limited to Singapore, New York, Beijing, Taipei, Hongkong, Shanghai, servicing over 10,000 enterprises, 150,000 individual members in total. Ucommune is the largest and most recognised co-working space brand in China.
