KYS Education Group intends to raise capital through an initial public offering. Sources have confirmed that the group plans to expand but has not yet decided when to launch the IPO. The education group’s recent collaboration with the New Zealand Consortium Universities is part of their expansion process ahead of the IPO. KYS posted a revenue of MYR 25 million in the first 3 months in June and projects an additional revenue of MYR 15 million after its recent collaboration programme.
KYS Education Group is planning an initial public offering (IPO) to raise funds for its expansion plans. The Edge Financial Daily cited sources familiar with the group’s plans, saying the group had yet to decide when to launch the IPO. KYS, founded by businessman Halim Saad, is principally involved in education, with its flagship private school Kolej Yayasan Saad located in Melaka.
The flagship school was founded in 1995 by Halim Saad. It has facilities for primary, secondary and tertiary foundation education. KYS International College Sdn Bhd international programme director Kamaruddin Awang declined to comment on the group’s IPO plans when meeting with local reporters at a signing ceremony last Friday for the collaboration with eight universities in New Zealand (New Zealand Consortium Universities) to offer foundation courses jointly developed by the latter.
Kamaruddin said, the four foundation programmes would be the first of their kind that had been accepted by all universities in New Zealand. Currently, the group’s KYS Business School has a partnership for an accounting programme with Victoria University of Wellington, Auckland University and Canterbury University. The sources told The Edge Financial Daily that the latest collaboration with New Zealand Consortium Universities is part of KYS’ expansion ahead of its planned IPO.
KYS is also reported to be in negotiations with a major property developer to set up a new school in Kuala Lumpur. “Since last year, KYSG has been expanding its educational offerings into tertiary education. Right now, it is looking at pre-school education. The goal is to provide a full-fledged one-stop centre for education — from preschool to primary, secondary and tertiary foundation,” another source told the financial media.
KYS posted a revenue of MYR25 million in the three months to June. With the latest collaboration programme, it targets to generate MYR15 million more in revenue. It is understood that the group is looking to spend MYR60 million to set up the school with a capacity of 900 students.
Source : DealStreet asia