McGraw Hill Prices IPO at $17, Below Expected Range

McGraw Hill, a leading global provider of educational information solutions, has priced its initial public offering (IPO) at $17 per share, which is below the previously announced range of $19 to $22. The company aims to raise approximately $4.15 billion by issuing 24.4 million shares on the New York Stock Exchange (NYSE) on Thursday, July 25th. This pricing strategy suggests that McGraw Hill may have faced challenges in attracting investors at the higher end of the price spectrum, potentially due to market conditions, investor sentiment, or specific concerns about the company's financial performance or growth prospects. By setting a lower price, McGraw Hill aims to make its shares more attractive to a broader range of investors, potentially increasing demand and ensuring a successful IPO.

McGraw Hill's business spans from K12 education to higher education and professional education, serving approximately 60 million learners and educators annually. The company is a top player in the U.S. K12 market, covering about 99% of U.S. public K12 school districts, and is also a leading provider of digital and print learning solutions in the U.S. higher education market, serving approximately 82% of U.S. higher education institutions. The IPO is a significant milestone for McGraw Hill, which has been privately held since its acquisition by Apollo Global Management in 2018. The proceeds from the IPO will provide the company with additional capital to invest in its educational content, digital learning platforms, and other strategic initiatives. This infusion of funds is expected to support McGraw Hill's ongoing efforts to expand its market share, enhance its product offerings, and drive long-term growth.

The IPO also marks a return to the public markets for McGraw Hill, which was previously listed on the NYSE before being taken private. The company's decision to go public again reflects its confidence in the future prospects of the education sector and its ability to generate sustainable returns for shareholders. As McGraw Hill prepares to trade on the NYSE, investors will be closely watching its performance and the broader implications for the education publishing industry. The company's stock will trade under the ticker symbol "MH." The underwriters for the offering include Goldman Sachs, Bank of Montreal Capital Markets, JPMorgan, Macquarie Capital, Morgan Stanley, Deutsche Bank, and UBS Investment Bank.