Jianzhi Bets on Education Stock Renaissance with New York IPO

Key Takeaways A year after first filing for a New York IPO, Jianzhi Education has set a price range of $5 to $7 and a $34.5 million fundraising target for the listing The listing would come after a strong trading debut for another Chinese education firm, indicating investor interest could be returning to the group after a major crackdown last year By Doug Young Could a new dawn be coming for Chinese education stocks? That’s the million-dollar question these days, as investors try to figure out which remaining Chinese education stocks are positioned to thrive as the dust settles after a massive government crackdown on the sector last year. While it’s too early to say if a rebound is near, it’s noteworthy that two of only a handful of recent U.S. IPO applications by Chinese companies have come from the education sector. We wrote about  one of those two weeks ago when shares of language training company Golden Sun Education  (NASDAQ: GSUN ) quadrupled on their first trading day on the Nasdaq, in the best debut by a Chinese company in New York for more than a year. The stock has risen even more since then, showing the first-day gain wasn’t just a fluke. Now, Jianzhi Education Technology Group Co. Ltd.  is hoping to copy that success with its own New York IPO, which was detailed in an updated prospectus  filed on Wednesday. Jianzhi first filed for the listing almost exactly a year ago. We wrote about it  then, as the timing seemed quite bad. Momentum was building at that time towards a massive government crackdown that saw Beijing ban private educators from offering tutoring services for K-12 students in core curriculum subjects. What’s more, last July represented the height of a regulatory storm targeting Chinese companies listing in the U.S., bringing such listings to a near-standstill.  Jianzhi wasn’t affected by the education crackdown since its services weren’t targeted by the new regulations. The company sells content, mostly instructional videos, to customers that ... Full story available on Benzinga.com