Driving school steers toward a Shanghai IPO

Eastern Pioneer Driving School Co Ltd, one of the largest driving schools in Beijing, is set to become the first listed driving school in China if its initial public offering initiative is approved.

The school, with registered capital of 370 million yuan ($59 million), intends to list its shares on the Shanghai Stock Exchange. According to the draft prospectus it released on May 27, the company achieved 284.5 million yuan in net profit last year, 35.4 percent higher than the previous year. Its average gross profit margin over the past three years topped 60 percent.

The company said it plans to issue up to 50 million shares in the forthcoming IPO.