NetEase Youdao files for U.S. IPO

Youdao, an e-learning unit part of the Chinese internet technology company NetEase, filed for an initial public offering with the U.S. Securities and Exchange Commission on Monday.

The company is expected to raise 300 million U.S. dollars and intends to list under the symbol "DAO" on the New York Stock Exchange.

Youdao's net revenue came in at 549 million yuan (about 77 million U.S. dollars) for the six months ended June 30, up 67.7 percent year on year. Its total revenue reached 732 million yuan (102 million U.S. dollars) in 2018, and its losses 209 million yuan (29 million U.S. dollars) last year, according to its prospectus.

The monthly active user (MAU) of Youdao reached over 100 million in the first half of the year. Its popular online courses enjoy over 1.21 million registered users during the same period, among which 338,000 are paid users, said the prospectus.

Zhou Feng, CEO of NetEase Youdao, said earlier this year that the online education industry is developing rapidly, and the growth rate of the whole industry is over 40 percent.

Last year, the revenue of Youdao increased 60 percent, and its popular courses have become the largest source of income, Zhou said.

Founded in 2006, Youdao provides online dictionaries, online classrooms, language courses and translation services.

NetEase shares were up nearly two percent at 265.54 U.S. dollars in afternoon trading, according to Reuters.