Maple Leaf Edu

completed

Founded in 1995 in Dalian, Maple Leaf offers a bilingual, dual-curriculum (Canadian and Chinese) and dual-diploma programs and currently operates the largest network of schools offering such an international program in China. (http://www.mapleleafschools.com)As of August 2014, Maple Leaf’s footprint comprised of 7 high schools, 7 middle schools, 6 elementary schools, 11 preschools/kindergartens and 2 foreign national schools located primarily in Tier II, Tier III and Tier IV cities in China, with a total capacity of about 22,500 students. In addition, five new schools will open in September 2014 - two schools in Tianjin, two new schools in Pinddingshan and one new school in Shanghai. Maple Leaf owns its school buildings and land use rights in 5 of the 8 cities in which it operates (Dalian, Wuhan, Tianjin, Chongqing, Zhenjiang, and Shanghai). However, since 2012, the company has adopted an asset-light approach by partnering with third parties, in particular local government, to develop new schools. Accordingly, the company signs a cooperation agreement making the third party responsible for acquiring the campus sites and building the school premises as per the specifications provided by Maple Leaf. The third party continues to own the asset while Maple Leaf takes it over only as the operator. Maple Leaf is preparing for its listing on Hong Kong Stock Exchange and would like IFC to participate in this capital raise as a cornerstone investor. IFC is thus considering an equity investment of US$20 million in Maple Leaf, which would enable the company to further scale up its high quality and low cost private education network in Tier II, III and IV cities where equivalent offerings are scarce. Proceeds of the planned IPO will be used to open sixteen new schools in Tier II, Tier III and Tier IV cities in China, creating additional capacity for over 11,000 new students (“Project”). The company is in advanced stages of negotiations and planning for a total of twelve new schools in Pinghu (a Tier 4 city), Xi’an (which is in a frontier region) and Yiwu (a Tier 4 city).