China's online learning platform Youdao files for US IPO

NEW YORK - Youdao, an intelligent learning firm of China's internet giant NetEase, filed for an initial public offering (IPO) with the US Securities and Exchange Commission late Monday, the company said in its latest prospectus.

Under the ticker symbol DAO, the company plans to be listed on the New York Stock Exchange, and to raise up to $300 million, according to the prospectus. Relevant pricing terms are yet to be disclosed.

The company's net revenues surged 67.7 percent year over year to $79.9 million for the six months ended June 30.

Founded in 2006, Youdao has gathered over 100 million average total monthly active users (MAUs) in the first half of 2019, as it furnishes learning products and services for all age groups in China, such as interactive learning apps for the study of various subjects including math and English.

The company's flagship Youdao Dictionary, launched in 2007, is China's No 1 language app in terms of MAUs in the first half of 2019, which hit a striking 51.2 million, according to research and consulting firm Frost & Sullivan.

The e-learning platform said in the prospectus that it intended to explore more market opportunities, as China has seen "the increasing prevalence of intelligent learning" driven by mobile internet, artificial intelligence and data analytics.

In 2018, the overall size of China's intelligent learning industry reached approximately $14.46 billion, and is expected to grow to around $100.7 billion in 2023, according to Frost & Sullivan.

Citi, Morgan Stanley, CICC, Credit Suisse and HSBC Corporation are the joint bookrunners on the IPO deal.