McGraw Hill Aims for $4.2B Valuation in $537M IPO

McGraw Hill is targeting a $4.2 billion valuation in its upcoming IPO, aiming to raise up to $537 million by offering 24.39 million shares priced between $19 and $22 each. The company plans to list on the NYSE under the ticker symbol "MH" and intends to use the IPO proceeds to repay outstanding borrowings. McGraw Hill is a leading publisher in the K-12 and higher education sectors, with its products used by 99% of U.S. public K-12 school districts and 82% of U.S. higher education institutions.

McGraw Hill, a well-known publisher in the K-12 and higher education sectors, is planning to go public with an initial public offering (IPO) that aims to raise up to $537 million. The company, based in Columbus, Ohio, is targeting a valuation of $4.2 billion and plans to list on the New York Stock Exchange (NYSE) under the ticker symbol "MH" [1].

McGraw Hill is offering 24.39 million shares, priced between $19 and $22 each. The company intends to use the IPO proceeds to repay outstanding borrowings. The lead underwriter for the IPO is Goldman Sachs [1].

The U.S. IPO market has seen an uptick in recent months, with investors flocking to new listings. McGraw Hill joins this trend, following recent public offerings by companies such as Circle Internet Group and Chime Financial [1]. The company's filing with the U.S. Securities and Exchange Commission (SEC) indicates that McGraw Hill is seeking to raise funds to support its digital educational tools and expand its offerings in the K-12 and higher education sectors [2].

McGraw Hill's products are used by 99% of U.S. public K-12 school districts and 82% of U.S. higher education institutions. The company has a global sales team of nearly 1,500 and has embraced digital educational tools, including an AI-based math program and an AI Reader trained on course content [2].

However, the company faces potential risks, including the impact of generative AI on its business. Generative AI could make creating rival teaching materials easier, potentially affecting demand for McGraw Hill's products [2].

McGraw Hill's IPO comes after a pause in the U.S. IPO market in April following President Donald Trump's tariff announcements. IPOs raised $4.3 billion in June, excluding financial vehicles like blank-check companies, the most in a single month since September 2023 [2].

References:
[1] https://finance.yahoo.com/news/textbook-publisher-mcgraw-hill-targets-103402325.html
[2] https://www.bloomberg.com/news/articles/2025-07-14/education-tech-firm-mcgraw-hill-seeks-537-million-in-ipo