Australia’s online education sector is massive with $6.5 billion in revenue expected to be generated over the next 12 months, IBISWorld says.
It’s also growing, with faster internet and higher technology saturation levels behind the charge. IBISWorld predicts revenue in the sector could jump 10% over the year.
But traditional bricks and mortar classrooms no longer address the needs of many students and professionals. The growth of online learning is being driven not only by technology improvements but by the increasing demand for flexible and cheaper education options.
However, the market doesn’t appear to have fallen in love with listed education companies. Making its market debut on Wednesday, 3P Learning’s IPO fell flat. Shares in the education company opened 4.6% under the $2.50 offer price at $2.39. And the first day of trading didn’t improve for the company with shares closing down 14% at $2.15. A short time ago 3P’s shares were trading up 7.44% at $2.31.
Listing on the ASX in May this year via a reverse takeover deal with Perth-based tech company DGI Holdings, online education provider iCollege.net is entering the online learning environment, today launching its first 26 online courses almost two months ahead of schedule.
“Online education is a flexible no-stress option for time-poor professionals who are looking to upskill and re-skill,” iCollege managing director Victor Hawkins said.
The training programs are sourced from around the world and can be customised to suit a student’s requirements.
“With our online infrastructure now complete and fully operational, iCollege is now quickly moving into the commercialisation phase of its growth plan. Over the next 12 weeks, the company is targeting rapid course expansion from industries spanning hospitality, education, community services, retail, health and tourism,” Hawkins said.
Since backing onto the ASX iCollege shares have been trading between $0.14 and $0.19. It closed down 16.65% on Wednesday at $0.14 a share and a short time ago was back up 14.29% at $0.16.