McGraw Hill Plans U.S. IPO After 13-Year Private Status

McGraw Hill, a US textbook and educational materials company, is planning to go public again after a 13-year break. The company was previously taken private in 2012 in a $2.5 billion transaction. McGraw Hill will list on the stock market in the coming months, with a decision on the exchange yet to be made. The company's IPO marks a significant milestone in the education sector, which has seen significant growth in recent years.

McGraw Hill, a prominent US textbook and educational materials company, is poised to re-enter the public markets after a 13-year hiatus. The company, which was previously taken private in 2012 in a $2.5 billion transaction, is now preparing for an initial public offering (IPO) that aims to raise up to $537 million [1]. The IPO, which is expected to be priced between $19 and $22 per share, will list McGraw Hill on the New York Stock Exchange under the ticker symbol "MH" [2].

The decision to go public marks a significant milestone for the education sector, which has seen substantial growth in recent years. McGraw Hill reported $2.1 billion in revenue during the fiscal year that ended on March 31, 2025, representing a 7% increase from the prior year. The company's net loss, however, decreased to $85.8 million, down from $193 million in fiscal year 2024 [1]. The company's digital segment, which comprises 65% of its overall sales, generated $1.4 billion in revenue, an 8% year-over-year increase [1].

McGraw Hill's IPO comes amidst a broader trend of private equity-backed companies seeking to enter the public markets. The education sector, in particular, has seen a decrease in investment activity and deal size due to various headwinds, including federal spending cuts and changes in education policy [1]. Despite these challenges, McGraw Hill's digital transformation and focus on a mix of curriculum, intervention, and assessment tools have positioned it as a strong candidate for an IPO.

The company's total addressable market, as estimated by a third-party study, is approximately $30 billion, including $9.3 billion in K-12 education, $12.3 billion in higher education, $2.9 billion in professional education, and $5.5 billion in international education [1]. McGraw Hill's leadership in the K-12 market, serving approximately 99% of public K-12 districts in the US, further underscores its potential as a publicly traded entity.

The IPO is expected to value McGraw Hill at up to $4.2 billion, with Platinum Equity, the current majority owner, retaining at least 85% of the company's voting power [1]. The proceeds from the IPO will be used to repay outstanding borrowings under the company's A&E term loan, totaling approximately $466.6 million [1].

The decision to go public is driven by a combination of factors, including pent-up demand for liquidity among private equity investors and a desire to tap into a larger market for capital. The recent improvement in investor sentiment has also created a more favorable environment for IPOs in the education sector [3].

In conclusion, McGraw Hill's return to the public markets represents a significant development for the education sector. The company's digital transformation and strong market position make it an attractive candidate for investors. The IPO, which is expected to be priced during the week of July 21, 2025, will provide McGraw Hill with the capital it needs to continue its growth trajectory and serve its extensive customer base [2].

References:
[1] https://marketbrief.edweek.org/financing-investment/mcgraw-hill-seeks-to-go-public-13-years-after-private-equity-buyout/2025/07
[2] https://www.renaissancecapital.com/IPO-Center/News/112109/Educational-publisher-McGraw-Hill-sets-terms-for-$500-million-IPO
[3] https://www.reuters.com/business/media-telecom/textbook-publisher-mcgraw-hill-targets-42-billion-valuation-us-ipo-2025-07-14/