tiprankstipranks
TAL Education To Raise $3.3B Via Private Placement; Street Sees 27% Upside
Market News

TAL Education To Raise $3.3B Via Private Placement; Street Sees 27% Upside

TAL Education Group, China’s after-school tutoring company, announced that it is raising around $3.3 billion from a group of investors through a private placement.

TAL Education (TAL) said that out of the total amount, $2.3 billion is in convertible notes, led by Silver Lake investor, while $1 billion is the equity portion raised through the newly issued class A common shares of the company. The transaction is likely to close in the near term, the company said.

“Immediately following the closing of the transaction, assuming the conversion of the entire Convertible Notes Portion into shares, the Convertible Notes Portion and the Equity Portion will account for 4.3% and 2.2% of the Company’s outstanding shares, respectively,” the company noted in a statement.

Silver Lake’s chairman Ken Hao said, “We are pleased to invest in TAL as China’s leading EdTech platform and have strong conviction in the Company’s leadership position and growth prospects in the education space.” (See TAL stock analysis on TipRanks)

So far this year, shares of TAL Education have appreciated by 41.1%

Earlier on Oct. 26, CLSA analyst Youngrin Kim reiterated a Buy rating and a price target of $80 (17.7% upside potential) on the stock. The analyst said, “we recommend investors look beyond FY21 for TAL Education Group. Its well-balanced offline and online education portfolio bodes well for catering to a heterogeneous education market, and this quarter we saw evidence of crossselling opportunities.”

Overall, consensus among analysts is a Strong Buy based on 5 Buys and 1 Hold. The average price target stands at $86.67 and implies upside potential of about 27.5% to current levels.

Related News:
AT&T Waives Data Overage Charges After Nashville Service Disruption
Voya Wins Regulatory Nod To Divest Individual Life Business; Street Is Bullish
Sundial Signs License Agreement with Simply Solventless; Street Sees 50% Downside

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles