Educational publisher McGraw Hill, backed by Platinum Equity, is seeking a valuation of up to $4.2bn in its upcoming US IPO, according to regulatory filings released on Monday.
The New York-based company, which was acquired by Platinum for $4.5bn in 2021, plans to raise as much as $537m through the sale of 24.39 million shares priced in a range of $19 to $22. McGraw Hill is expected to list on the New York Stock Exchange under the ticker “MH”.
The offering marks a return to the public markets more than a decade after McGraw Hill was taken private in a $2.5bn deal by Apollo Global Management in 2012. A prior re-listing attempt in 2015 did not materialise.
McGraw Hill’s IPO comes amid a broader resurgence in the US public markets, as private equity sponsors take advantage of improving investor sentiment following a prolonged period of market uncertainty driven by elevated interest rates and macroeconomic headwinds.
Other sponsor-backed issuers tapping the IPO market include Advent-backed consumer data group NIQ Global, which also launched its roadshow this week, seeking a valuation of $7.26bn on a fully diluted basis.
McGraw Hill is a dominant player in the education sector, with its content used by 99% of US K-12 public school districts and 82% of higher education institutions, according to its prospectus. The company reported a 7% year-on-year increase in revenue, surpassing $2bn for the 12-month period ending 31 March.
