NetEase Reportedly Seeks U.S. Listing for Education Platform Youdao
NetEase Inc. (Nasdaq: NTES), a Chinese internet conglomerate, is considering a U.S. IPO for its online education and translation business NetEase Youdao, as various media reported this week.
According to 36Kr, NetEase has been talking to two “well-known” underwriters about listing NetEase Youdao on a U.S. stock exchange.
The Youdao line includes dictionary and translation apps, online education apps, note-taking apps, and handheld translator devices such as the Youdao Translation Egg. It also includes an AI platform for developers and an advertising tool, Youdao Smart Choice.
NetEase Youdao claimed last year that its dictionary was used by 700 million people in China.
Youdao was valued at $1.1 billion during its Series A round last year, according to report. Youdao’s investors include MOOC-CN Investment and Legend Capital. MOOC-CN Investment is a joint venture between MOOC-CN and Tsinghua holdings, while Legend Capital has invested in top Chinese technology companies like Bilibili Inc. (Nasdaq: BILI), Uxin Ltd. (Nasdaq: UXIN), iKang Healthcare Group Inc., and PPDAI Group Inc. (NYSE: PPDF).
The parent company, NetEase, was founded in 1997 by William Ding; it became publicly traded on the Nasdaq in 2000 and is currently valued at $32 billion. NetEase generates most of its revenue from gaming, but Ding said that in a February statement that the company is also looking to boost its e-commerce, music, and online education businesses.
NetEase stock closed at $249.25 per share on Thursday, up $1.50 on the day. Its stock is up 8 percent year-to-date.