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JunHe Advises on NetEase Youdao’s IPO on the New York Stock Exchange


On October 25, 2019, NetEase Youdao (“Youdao”) made its debut on the New York Stock Exchange (“NYSE”) under the stock code “DAO”. The IPO was priced at USD 17 per American depositary share (“ADS”) and is expected to raise over USD 200 million.

The first subsidiary from NetEase that has listed for an independent IPO, Youdao is known as the most popular e-learning brand in China. This leading Chinese e-learning platform operates “Youdao Premium Courses”, “NetEase Cloud Classroom”, “Youdao Dictionary” and other products that are highly renowned in China.

JunHe was appointed by the underwriter to advise on Chinese law throughout the project and managed to complete it in only six months since it started in April 2019.  As this IPO involved a group reorganization, as Youdao was spun off from the NetEase Group, there was a huge workload for the JunHe team. However, by actively cooperating with the client and other intermediaries and strictly following the project schedule, the team managed to facilitate the successful IPO of Youdao. 

Since July 2019, China has consecutively launched new regulations and rules in the e-learning sector and has continuously introduced new compliance requirements for e-learning companies. In response to the continuous change of regulatory policies, the JunHe team researched new policies and gave continuous attention to the e-learning sector. Thus, they were able to accurately analyze the regulatory trends and determine the policy risks for the underwriter which in turn allowed them to give practical compliance recommendations for Yaodao’s business and successfully assist with Youdao’s access to foreign capital markets. Due to this, JunHe’s professional and sophisticated legal services won high recognition from the underwriter, Youdao, and other intermediaries.

JunHe team was led by Partners WANG, Jiangang, YI, Yisong, and SUN, Xiaojia. Partner YU, Su also provided critical support in respect of the legislation and policy regarding the education industry.

JunHe is the only Chinese law firm to be admitted as a member of Lex Mundi and Multilaw, two international networks of independent law firms. JunHe and selected top law firms in major European and Asian jurisdictions are “best friends.” Through these connections, we provide high quality legal services to clients doing business throughout the world.