CICC Assists Youdao, Inc. in US$238mm Follow-on Offering
On February 11, 2021 (EST), Youdao, Inc. (“Youdao” or the “Company”, NYSE:DAO) priced its US$238mm (pre-greenshoe)/US$274mm (post-greenshoe, assuming fully exercised) follow-on offering, CICC acted as the Joint Bookrunner (JBR) in the transaction.
This is the largest-ever follow-on equity financing by a Chinese company in 2021, and the largest-ever overseas follow-on equity financing by a Chinese education company since 2020 (assuming greenshoe fully exercised).
Youdao is a leading intelligent learning company in China dedicated to developing and using technologies to provide learning content, applications and solutions to users of all ages. Building on the popularity of its online knowledge tools such as Youdao Dictionary and Youdao Translation, Youdao now offers online courses covering a wide spectrum of age groups, subject matter, learning goals and areas of interest. In addition, Youdao has developed a variety of interactive learning apps and smart learning devices.
Highly efficient execution with strict confidentiality
Facing the Chinese New Year holiday and imminent expiration of financial data, CICC proactively and efficiently led major workstream including timetable arrangement and due diligence, helping the Company successfully price the offering on Chinese New Year’s Eve.
Effective marketing to achieve ideal pricing
CICC helped the Company grasp the favorable market window by fully mobilizing its worldwide sales resources to tap into investor demand, hence created strong global and Chinese quality momentum and achieved ideal pricing under very tight schedule.
Laying a solid foundation for long-term strategic cooperation with NetEase and Youdao
The successful completion of Youdao US follow-on offering sets an extraordinary milestone. CICC’s efficient execution gained full trust from the client and was highly recognized by the Company, reinforcing a long-lasting relationship between NetEase, Youdao and CICC.
As a leading investment bank with “Chinese Roots, International Reach”, CICC will continue to utilize its capital market expertise as well as its seamless integration of onshore and offshore capabilities, to provide continuous supports to customers through introducing global investors, reaching international capital market, and promoting business development globally.