How to Buy the iHuman Stock IPO
Source: Pixabay

How to Buy Into the iHuman Stock IPO

By

Updated

On Oct. 5, iHuman revealed the terms for its IPO in an SEC filing. The company plans to raise $84 million in the offering. How can investors buy into the iHuman stock IPO?

Article continues below advertisement

What is iHuman?

iHuman is a China-based company that introduced its first interactive and self-directed learning app in 2016. The education company offers learning apps for children between three and eight years old.

When is the iHuman IPO date?

iHuman’s IPO date hasn't been set yet. The company is offering about 7 million ADSs (American depositary shares) in the IPO, priced at $11–$13 each. If iHuman prices at the midpoint of that range, the company would have a valuation of $609.7 million. The listed underwriters for the IPO are Citigroup, Credit Suisse, Tiger Brokers, CMBI, and CLSA. iHuman has granted underwriters a 30-day option to buy an additional 1.05 million ADSs at the IPO price.

Article continues below advertisement
How to Buy the iHuman Stock IPO
Source: Pixabay

Where to buy the iHuman stock IPO

To buy iHuman stock when it lands on the NYSE, you'll need to have a stock trading account. You can open a stock trading account with online brokerages such as Robinhood, SoFi Invest, Fidelity Investments, Charles Schwab, E*Trade, and TD Ameritrade. After you've transferred funds to your stock trading account, you can buy iHuman stock.

Article continues below advertisement

How to buy the iHuman stock IPO on Robinhood

To buy iHuman stock on Robinhood, you'll need to have a brokerage account with the platform. After you have sufficient funds in your investment account, you can buy iHuman stock.

How to Buy the iHuman Stock IPO
Source: Pixabay
Article continues below advertisement

Should I buy iHuman stock at its IPO?

Based on its strong growth outlook, iHuman stock IPO seems to be a "buy." The global market for edutainment set to grow 17 percent compounded annually between 2016 and 2025, according to a 2020 market research report by Mordor Intelligence. iHuman is also likely to benefit from the continued coronavirus pandemic’s impact on schooling and the need for keeping younger children engaged at home.

In the first six months of 2020, iHuman’s sales surged 102.1 percent year-over-year to 185.5 million Chinese yuan ($26.3 million). It posted a net profit of 5.6 million yuan ($0.8 million) in the first half of 2020, but a net loss of 271.8 million yuan in the first half of 2019. As of June 30, 2020, the company had 10.3 million average monthly active users and 1.4 million paid users.

Advertisement

More From Market Realist