U.S. publisher McGraw Hill is targeting a valuation of $4.2 billion in its IPO, the company said on Monday, joining other private equity-backed firms looking to take advantage of improved investor sentiment.
Activity in the U.S. IPO market has ramped up after a few dull months due to trade policy confusions. New listings of companies such as stablecoin issuer Circle Internet Group and digital bank Chime Financial saw overwhelming investor interest.
Platinum Equity-backed McGraw Hill is looking to raise up to $537 million from 24.39 million shares priced between $19 and $22 apiece.
The move comes nearly 13 years after the textbook publisher was taken private for $2.5 billion by PE giant Apollo, which also attempted to re-list McGraw in 2015.
The company was sold to private equity investment firm Platinum in 2021 for $4.5 billion.
Relatively high interest rates, sticky inflation, and geopolitical turmoil have fueled a large backlog of PE-backed companies looking to go public.
Consumer intelligence company NIQ Global, backed by private equity firm Advent, also launched its U.S. IPO roadshow on Monday, targeting a valuation of $7.08 billion.
McGraw Hill is one of the most recognized names in the publishing industry, with 99% of U.S. public K-12 districts and 82% of U.S. higher education institutions using its products, according to company filings.
The company revealed a 7% rise in revenue to over $2 billion for the year ended March 31. It estimates adjusted earnings before interest, taxes, depreciation, and amortization, or core profit, to grow nearly 7.5% for the three months ended June 30, 2025 from a year earlier.
The company will aim to trade on the NYSE under the symbol “MH”. Goldman Sachs is the lead underwriter for the IPO.