Shares of U.S. publisher McGraw Hill, which debuted on the New York Stock Exchange on Thursday, continued to remain flat during Friday’s session, trading at $17 each, the same as the IPO price. The stock ended its debut day at $17 after fluctuating widely.
The global education company, backed by investment firm Platinum Equity, had raised $414.63 million in its initial public offering in the United States. The company sold 24,390,000 shares, priced at $17 each, below its marketed range of $19 to $22, which valued McGraw at $3.25 billion.
The company’s entry into U.S. markets came after it was taken private by Apollo. The private equity giant had also attempted to relist the company in 2015. It was then sold to Platinum Equity, which will continue to hold 84.6% of McGraw’s total outstanding shares after the offering.
The U.S. IPO market is gaining momentum on the back of a rally in equities and some stellar debuts in recent months. The U.S. market for first-time share sales is climbing back after a pause in April following President Donald Trump’s tariff announcements. IPOs on U.S. exchanges have raised $19.06 billion this year, according to Bloomberg data.
McGraw Hill is one of the most recognized names in the publishing industry, known for its textbooks and other learning resources, with 82% of U.S. higher education institutions using its products, according to company filings.
About McGraw Hill
Founded in 1888, the textbook publisher has embraced digital educational tools, including an AI-based math program, as well as an AI reader trained on course content. Its products are used by students across K–12, higher education, and professional learning and had about 26 million paid digital users during the fiscal year ended March 31, the filing shows.
McGraw Hill had a net loss of $85.8 million on revenue of $2.1 billion in the fiscal year ended March 31, compared with a net loss of $193 million on revenue of $1.96 billion a year earlier, according to its filing.
Generative AI is also one of the potential risks to McGraw Hill’s business, as it may make creating rival teaching materials easier, which could affect demand, according to the filing.
(With inputs from Reuters, Bloomberg)
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