OEL IPO raised a stunning S$72m in gross proceeds

Funds will go to new campus.

Overseas Education Limited (OEL), the holding company of Overseas Family School Limited (OFS), announced that its initial public offering (IPO)of 125,000,000 new shares priced at S$0.48 each has attracted strong investor demand from the market and was oversubscribed.

Due to the overwhelming response from institutional investors, the joint underwriters for the IPO have over-alloted 25,000,000 Shares, all of which were allotted to the placement. In total, 150,000,000 shares (including 25,000,000 over-allotment shares) were fully subscribed, with gross proceeds raised of S$72 million.

Trading of OEL’s shares is expected to commence on a “ready” basis on the Mainboard of the Singapore Exchange Securities Trading Limited (SGX-ST) at 9.00 am on 7 February 2013. United Overseas Bank Limited (UOB) is the Issue Manager of the IPO. Both UOB and UOB Kay Hian Private Limited (“UOBKH”) are the Joint Underwriters and Joint Placement Agents of the Invitation.

Commenting on the investors’ positive response, Executive Chairman and CEO, Mr David Perry said, “We are heartened by the strong confidence that investors have shown in OEL’s equity story. Moving forward, we are optimistic about our prospects and will work towards what we have set out to do in terms of future plans.”

OEL plans to use all of the net IPO proceeds for the building of a new school campus. The Group has set aside S$60.0 million from distributable profits to part finance the new school campus. In addition to that and the net proceeds of the Invitation, OEL will require additional funding via bank borrowings and/or equity funding for the construction of the new school campus.

OEL’s policy is to pay dividends of at least 50.0% of the Group’s net profit after tax to Shareholders for each financial year.