Shares of New Oriental Education & Technology Group Inc., China's largest private-education company based on student enrollments, soared 39 percent after their initial public offering, the biggest first-day gain for a new stock since April.

New Oriental climbed $5.88 to $20.88 in New York Stock Exchange Composite trading, gaining as much as 55 percent during the day. The Beijing-based company raised $112.5 million Thursday by selling 7.5 million American depositary shares for $15 each, more than the $11 to $13 range it predicted in a filing with the U.S. Securities and Exchange Commission. One depositary share equals four common shares.

Investors are showing a renewed appetite for shares of IPOs, which are selling at the fastest pace in six years. The Bloomberg IPO index, which tracks companies in their first year of trading, has risen about 15 percent in 2006, compared with a 3.7 percent rise in the Standard & Poor's 500 index.

"It's a very good sign and sets a strong tone for the IPO market," said Ben Holmes, publisher of Boulder, Colorado-based Morningnotes.com. U.S. companies are planning to raise at least $1.6 billion this month from initial offerings, according to data compiled by Bloomberg.

Foreign-Language Classes

New Oriental offers English and other foreign-language classes, test-preparation and online instruction. It runs 25 schools and more than 110 learning centers concentrated in the eastern provinces of China.

"There's nothing else like it in the market; it's a huge opportunity for growth,'' Holmes said.

Proceeds will be used to develop programs, acquire facilities and repay debt, according to the filing. New Oriental opened 10 schools in the fiscal year ended May 31 and plans to open six to eight more in fiscal 2007.

"Private education is just starting to take off in China and we hope we can help China's growth,'' Chief Executive Officer Michael Ming Hou Yu said in an interview.

The sale was managed by Credit Suisse Group, Goldman Sachs Group Inc. and Piper Jaffray Cos. The company trades on the New York Stock Exchange under the ticker EDU.