Educational publisher McGraw Hill, backed by Platinum Equity, has raised $414.6m in its initial public offering on the New York Stock Exchange, pricing below its initial range in a sign of cautious optimism returning to the market, according to a report by Reuters.
The firm sold 24.39 million shares at $17 apiece, below its previously marketed range of $19-$22, giving the company a valuation of approximately $3.25bn. McGraw Hill is set to begin trading on the NYSE on Thursday under the ticker “MH”.
The offering comes nearly 13 years after the company was taken private by Apollo Global Management, which later attempted a public market return in 2015 before ultimately selling the business to Platinum Equity. Following the IPO, Platinum will retain a controlling 84.6% stake in the company.
The listing adds to a growing pipeline of private equity-backed exits amid improving equity market conditions. Sponsors have increasingly looked to tap public markets following a prolonged period of subdued IPO activity.
McGraw Hill is a leading name in academic publishing, with its learning platforms and textbooks used by 82% of U.S. higher education institutions, according to its IPO prospectus. For the fiscal year ending 31 March, the company reported revenue growth of 7% to more than $2bn.
