U.S. IPO activity has rebounded significantly after a slump triggered by trade tensions earlier this year. But investors remain selective about new offerings. For example, shares of NIQ Global, a consumer behavior analytics company backed by Advent, fell 3.6% in its NYSE debut on Wednesday. Meanwhile, a number of companies are choosing to remain private to avoid market uncertainty.
“We are a resilient business, and all of these macroeconomic factors are certainly interesting, but they do not impact our company. We know that now is the right time for us,” said McGraw Hill CEO Simon Allen.
At the same time, investors enthusiastically welcomed the IPO of digital bank Chime and stablecoin issuer Circle, whose shares showed strong growth on the first day of trading.
McGraw Hill shares opened at $17, matching its IPO price. The company, which is controlled by investment fund Platinum Equity, priced below its target range ($19-22) to raise $414.63 million by offering 24.39 million shares.
McGraw-Hill Education was spun off from McGraw-Hill Companies in 2013 and sold to Apollo Global Management for $2.5 billion in a privatization deal. The remaining company was renamed McGraw Hill Financial Inc., which was later renamed S&P Global.
In 2015, Apollo tried to take McGraw public again, but abandoned the plans. In 2021, billionaire Tom Gores’ investment fund, Platinum Equity, acquired McGraw for $4.5 billion.
Today, McGraw Hill remains one of the most recognized brands in the publishing industry. According to corporate reporting, its products are used by 99% of K-12 public school districts and 82% of higher education institutions in the United States.
Source: Reuters