Intueri Education IPO

[steve fleming]

http://stocknessmonster.com/news-ite...E=ASX&N=669657

http://www.nbr.co.nz/article/200m-ed...-paper-pointer

"A $200 million education listing may be in the pipeline.
In today’s National Business Review print edition, chief reporter Duncan Bridgeman reveals a roll up of New Zealand education providers could culminate in a sizeable equity raising and possible NZX-listing.
The entity will potentially be spun out of ASX-listed Arowana International – and Massey University chancellor Chris Kelly is being lined up for a key role."

Those who happened to read the NBR article on Friday , was there anything interesting to come out of it? (timing? structure? broker?)

thanks

[karen1]

Hi Steve,

Found the release info interesting reading, and will follow this. Surprised no one else has picked up on it. The prospect of a roll up of providers in this field would most certainly weed out some of the smaller, less able/satisfactory providers, and would at least offer more confidence to potential end users as what is envisaged will need to have very high standards across the board.

On the surface, the lineup of post merger management/advisory members looks impressive. The growing desire of international students to be coached here is positive, and will hopefully continue for many years.

[steve fleming]

- Revenue up 10% and EBIT up 23% versus 1H FY2013
- Primary focus has been on driving operational excellence (including rollout of Rockefeller Habits operating methodology)
- This has been across all facets of the group including sales, marketing, procurement, finance, administration & academic
- Results have been pleasing thus far in a short 6 month operational window, but full impact of initiatives not fully realised yet
- International enrolments +33% versus 1H FY2013''

So some nicely trending numbers

Agree, govt policy will always be a risk - but it would be a brave government that cuts funding to Quantum with its focus on 'second chance' education and upskilling of Maori and Pacfic Islanders

NZ government aims to double value of international education by 2025

[Zaphod]

Agree, govt policy will always be a risk - but it would be a brave government that cuts funding to Quantum with its focus on 'second chance' education and upskilling of Maori and Pacfic Islanders

Cuts to PTE's that service the second chance sector have occurred progressively over the past few years as the TEC demands higher student outcome rates and pathways to further educational opportunities or getting them into workplaces. One large provider (900+ EFTS) was cut in the last few years, along with a number of smaller providers.

Although Quantum's student outcomes look highly appealing, you need to be careful of how they define a qualification. One method is to treat each unit as a qualification, thereby making results look much more favourable than those PTE's that define a complete set of units as a qualification. I do not know which method they are using.

I also note that the TEC announced that scaling the results of Maori and Pacific Islanders will return, after abandoning the practice a few years ago. This will probably result in much more favourable outcomes for those PTE's that are left servicing this market.

[steve fleming]

The other big growth driver is the opportunities in online education:

"In New Zealand, the online education industry is less developed than in Australia. Overlaying an online education component for Intueri’s existing courses (including QEG’s courses) will enable Intueri to more economically take advantage of opportunities to expand its student intake capacity and deliver courses at a lower unit cost per student. This in turn will allow Intueri to invest some of these savings in enhancing the student education experience with potential to thereby further drive increases in course and qualification completion rates. There is also the opportunity to roll out the online courses that OCA already has in Australia to the New Zealand market."

[Zaphod]

The other big growth driver is the opportunities in online education:

"In New Zealand, the online education industry is less developed than in Australia. Overlaying an online education component for Intueri’s existing courses (including QEG’s courses) will enable Intueri to more economically take advantage of opportunities to expand its student intake capacity and deliver courses at a lower unit cost per student. This in turn will allow Intueri to invest some of these savings in enhancing the student education experience with potential to thereby further drive increases in course and qualification completion rates. There is also the opportunity to roll out the online courses that OCA already has in Australia to the New Zealand market."

The NZQA placed a number of hurdles around online courses in New Zealand. Mostly, these revolve around assessment and requiring the use of proctors to validate the identity of the student. This obviously places some economic burdens on the provider. At one point I was involved with a trail of using various technologies (fingerprint scanner, webcams etc.) to verify student identity when taking examinations remotely.

Australia generally has a more favourable outlook towards online education, however it suffers from some other issues that we don't such as a lack of recognition of individual learning units between states.

I'm sure all these issue can be overcome though, especially once some of the technophobic NZQA staff retire!

[steve fleming]

http://intuerishares.co.nz

scheduled to list on 23 May

[Entrep]

I only trade online using Commsec and ASB Securities, I don't think ASB are involved in this IPO.

I might want around $10K of shares in this though. Will that be possible? Which broker would be easiest to use? Never been in an IPO to be honest.

[percy]

I only trade online using Commsec and ASB Securities, I don't think ASB are involved in this IPO.

I might want around $10K of shares in this though. Will that be possible? Which broker would be easiest to use? Never been in an IPO to be honest.

Most times lead broker will give other brokers an allocation.
I would register your interest with both Commsec and ASB.

[mark100]

Where is the priority for existing AWN shareholders?? Many of us invested in AWN for exposure to Intueri. Now it's been sold with AWN only maintaining a minority interest. And they can't even offer existing shareholders an allocation