McGraw Hill targets $4.2 billion valuation in IPO
Educational publishing giant McGraw Hill is preparing to go public, targeting a valuation of $4.2 billion in an initial public offering (IPO), according to a company announcement on Monday, Reuters reported. Backed by private equity firm Platinum Equity, the company aims to raise up to $537 million by offering 24.39 million shares at a price range of $19 to $22 each.
This move marks a significant step for McGraw Hill nearly 13 years after it was taken private by Apollo Global Management in a $2.5 billion deal. Apollo had previously attempted to relist the company in 2015 without success. In 2021, Platinum Equity acquired McGraw Hill for $4.5 billion, and is now looking to capitalize on improved investor sentiment in the IPO market.
McGraw Hill’s offering comes amid a broader resurgence in IPO activity in the U.S., driven by easing inflation fears and strong investor appetite for new listings. Companies like Circle Internet Group, a stablecoin issuer, and digital banking firm Chime Financial have recently sparked interest with their own public market plans.
Despite persistent macroeconomic challenges—including elevated interest rates, inflation concerns, and global geopolitical instability—many private equity-backed firms are now eager to access public capital markets. According to Kat Liu, vice president at IPO-focused indexes IPOX, sponsors are increasingly willing to accept markdowns to gain liquidity while market conditions are favorable. “The IPO window feels more tactical than structural,” Liu noted, suggesting firms are accelerating timelines to stay ahead of potential market volatility.
McGraw Hill brings strong brand recognition and broad market penetration to the table. Company filings reveal that its educational content reaches 99% of U.S. public K-12 school districts and 82% of higher education institutions. For the fiscal year ending March 31, the company reported a 7% increase in revenue, surpassing $2 billion.
Once public, McGraw Hill plans to trade on the New York Stock Exchange under the ticker symbol “MH.” Its listing is expected to draw significant attention from institutional investors seeking exposure to the education technology and content sector, especially as the company continues its transition into digital and subscription-based learning solutions.
McGraw Hill’s IPO launch also coincides with another major market entry: consumer intelligence firm NIQ Global, backed by Advent International, began its own U.S. IPO roadshow Monday, aiming for a $7.26 billion valuation on a fully diluted basis.
As private equity firms seek liquidity events in a shifting economic landscape, McGraw Hill’s upcoming IPO could be a key indicator of how much public markets are willing to pay for long-standing brands with solid fundamentals—and how far PE firms are willing to bend to meet them.
