HONG KONG • Bexcellent Group Holdings, whose top tutor earns more than HK$40 million (S$7 million) a year, yesterday surged as much as 31 per cent on its first day of trading in Hong Kong.
The provider of tutoring services to secondary school students in Hong Kong is so popular that individual investors placed orders for about 289 times the stock initially available to them.
Bexcellent raised HK$135 million in its initial public offering (IPO) after pricing shares near the top of a marketed range.
That is a contrast to Xiaomi Corp, which priced its IPO at the low end two weeks ago.
Bexcellent shares ended at HK$1.32, 22 per cent above its IPO price of HK$1.08.
Courses and products provided by Bexcellent's top five tutors accounted for more than half of its total revenue last year, the company said in its IPO prospectus.
Remuneration payable to the top tutor was HK$43.4 million in the year through July 2017, the document shows.
Rival firm Hong Kong Education International Investments ran a newspaper advertisement in 2015, offering to pay Bexcellent's top tutor Lam Yat Yan (above) an annual salary of HK$85 million.
That is more than Bexcellent's net income of HK$34.1 million in the same period.
Rival firm Hong Kong Education International Investments ran a newspaper advertisement in 2015, offering to pay Bexcellent's top tutor Lam Yat Yan an annual salary of HK$85 million.
Shares of Hong Kong Education have plunged 97 per cent since its 2011 IPO, while Mr Lam has remained a tutor and shareholder of Bexcellent.